NIO, China’s bellwether EV start-up sees sales slump as Tesla’s cut-price Model Y steals its thunder

The Shanghai-based electric carmaker delivered 5,578 units in February, 22.8 per cent down from sales of 7,225 a month prior

Tesla slashed the price of its Model Y sport-utility vehicle (SUV) by 30 per cent at the start of the year, a move that has generated more demand

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An ES8 electric sport utility vehicle (SUV) at the NIO’s dealership in Shanghai, China, on March 1, 2021. Photo: Bloomberg

Published: 2:00pm, 2 Mar 2021Updated: 10:04am, 7 Mar 2021

Sales of China’s bellwether electric vehicle (EV) start-up, NIO, slowed in February as it faced the challenge of Tesla’s Shanghai-made Model Y in the world’s largest car market.

Shanghai-based NIO, founded by William Li in 2014, delivered 5,578 units last month, 22.8 per cent down from sales of 7,225 cars in January. In February 2020, NIO delivered a scant 707 units owing to sales and production disruptions by the Covid-19 pandemic.

“Tesla offered a sharp price cut in their Model Y and created strong demand,” Li told an earnings conference call on Tuesday. “But we are chasing long-term growth and are not looking to trigger a hefty sales jump via price reductions.”

The carmaker reported a loss of 1.39 billion yuan (US$212.8 million) in the fourth quarter of last year.

Launches of new models by conventional carmakers this year are set to fuel competition in the lone bright spot of the global automobile industry.

Li said NIO is targeting sales of 20,000 to 25,000 units in the first quarter of 2021.