Chinese electric vehicle manufacturer Nio has launched an aggressive pricing strategy, cutting costs for its long-range battery models by up to 5.6% as competition in China’s premium EV market reaches new heights. The move comes hours after Tesla unveiled its six-seater Model Y L SUV in the same market, signaling escalating tensions between the automakers.
Strategic Price Cuts Target Key Models
Nio’s latest adjustment reduces the cost of its 100-kWh extended-range battery pack by ¥20,000 (approximately $2,780), impacting all vehicles equipped with this configuration. The ET9 executive sedan sees a modest 2.54% price reduction from ¥788,000 to ¥768,000, while more affordable options like the ET5 and ET5 Touring experience a sharper 5.62% decrease when equipped with the larger battery.
The company simultaneously announced benefits for existing customers, including:
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- A ¥20,000 price reduction (from ¥58,000 to ¥38,000) for permanent battery upgrades from 75-kWh to 100-kWh configurations
- ¥20,000 rebate vouchers for recent participants in Nio’s Battery as a Service buyout program
Tesla’s Market Move Triggers Rapid Response
Industry analysts note the pricing announcement’s strategic timing, coinciding with Tesla’s Chinese launch of its expanded Model Y lineup. The new six-seater configuration directly competes with Nio’s core market segment, prompting what appears to be a defensive maneuver from the domestic automaker.
This latest development underscores the fierce competition in China’s premium EV space, where manufacturers are increasingly leveraging pricing strategies to maintain market share. Nio’s comprehensive approach—affecting both new purchases and existing ownership costs—demonstrates the company’s commitment to remaining competitive amid Tesla’s expanding product offerings.
The parallel announcements from both automakers suggest an intensifying battle for dominance in the world’s largest electric vehicle market, with pricing emerging as a critical differentiator for premium EV brands.
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