Chinese EV maker Nio signals it will not join an industry price war, as market reacts to Tesla’s discounts amid rising competition
- Nio president says ‘offering discounts to chase a rise in sales volume is not an ideal solution’ for premium EV brands
- Qin Lihong says an accelerated pace of electrification on mainland roads still bodes well for premium EV producers this year
A senior Nio executive has said China’s cutthroat premium electric vehicle (EV) market will not necessarily lead to an all-out price war as more petrol cars are replaced by battery-powered counterparts.
“Price reductions will spread in the EV industry, but not all players will follow suit,” he said. “For a premium brand, offering discounts to chase a rise in sales volume is not an ideal solution.”
Qin said that an accelerated pace of electrification on mainland roads still bodes well for premium EV producers this year, albeit with stronger competition.
“Overall, 2023 will be a stern test for EV makers, but we believe growth opportunities remain huge as the EV adoption rate continues to rise,” said Nio’s president.
In 2022, about one in every four new vehicles sold on the mainland, or 6.5 million units, were powered by batteries, up 96 per cent year-on-year.