At the beginning of the new year of rabbit, the "price war" in the new energy vehicle (NEV) market seems to be getting fierce. Today, market sources said that NIO has started to lower the prices for 2022 ES6 and ES8, and ES7 also has a certain discount. Relevant people confirmed from two NIO sales staff that this promotion plan was notified at the regular meeting on the morning of February 1 and took effective soon afterwards. However, this news was not announced on NIO's official website, NIO App or other official channels.
According to this promotional plan, the price of NIO's 2022 ES6 and ES8 will be reduced by up to more than 100,000 yuan, and NIO has no restrictions on the purchase method, whether it is whole vehicle purchase and battery leasing plan (BaaS). For users who purchase NEVs in full, including NIO ES7, NIO can also give discounts ranging from 3,000 to 5,000 yuan.
After the beginning of the year of rabbit, the price war of new energy vehicles is escalating. On the first day of February alone, GAC Aian launched a time-limited coupon of 5,000 yuan per vehicle, as well as other sales promotions including 3-year zero interest, low down payment, etc. Volvo has launched a disguised price reduction for its pure electric vehicle C40 and XC40 models. Consumers who pay a deposit of 5,000 yuan before March 31 this year can enjoy a discount of 25,000 yuan when paying the final payment, which is equivalent to a price reduction of 20,000 yuan.
Feifan Automobile, a subsidiary of SAIC Motor, announced to adjust the price of mid-to-large pure electric SUV Feifan R7 by 20,000 yuan to 195,900 yuan, making it the only mid-to-large pure electric SUV that is priced below 200,000 yuan.
“Tesla's sharp price cut has further exacerbated the 'price war' in the domestic new energy vehicle market." Some insiders believe that with the withdrawal of the "national subsidy", the NEV market will gradually shift from policy-driven to market-driven, and will compete head-on with fuel vehicles. The price of raw materials for NEVs is greatly affected by external factors, and frequent fluctuations in official guidance prices of NEVs will certainly damage the brands’ reputation and channel management. Therefore, the car companies are more inclined to lower the prices in disguise via promotional activities, and use market feedback as the basis for whether to reduce the prices.
GAC Aian said frankly that after the "national subsidy" expired, price wars and cost wars will intensify. Against the background of increasing polarisation in the NEV market, the winner will always win. 'Fighting back' is a direct response to Tesla (‘s price war)."
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