Image: NIO
NIO President Qin Lihong said on Monday to reporters the current EV industry price war triggered by Tesla may not include all automakers, according to South China Morning Post.
The statements confirmed that NIO won’t be cutting its prices, as Qin says it wouldn’t be advantageous for the company.
“Price reductions will spread in the EV industry, but not all players will follow suit,” Qin said. “For a premium brand, offering discounts to chase a rise in sales volume is not an ideal solution.”
NIO Q4 2022 Deliveries Increase 60% Year-Over-Year https://t.co/Jj3lAj2FAR
— TeslaNorth.com (@RealTeslaNorth) January 1, 2023
Qin also explained to reporters that it wouldn’t be recommended for most premium electric vehicle (EV) brands to offer large discounts to boost sales, especially as EVs gain more widespread adoption.
“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,” Qin added.
Chinese EV automakers Xpeng and Aito cut their prices in reaction to Tesla’s discounts last month. Other EV companies such as Li Auto, alongside NIO, have yet to change prices. But it’s unclear how long these automakers can hold out when consumers speak with their wallets.
Many have noted in the weeks since the U.S. automaker’s huge discounts that Tesla’s price cuts would challenge startup automakers, especially those who are struggling to reach profitability, including NIO.
According to the China Passenger Car Association (CPCA), battery-electric vehicles made up roughly 6.5 million units in China in 2022, representing a 96 percent increase year over year. The CPCA predicts growth will slow in 2023, instead reaching a 26 percent sales growth increase on the year.
