Li Bin slapped in the face! NIO’s entire system has reduced prices, and charging rights have also shrunk ｜ First-line

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　　Source: New Consumer Daily

　　NIO, which has always claimed not to reduce prices, still failed to hold on.

　　Recently, NIO announced that it will untie the lifetime power exchange rights from the vehicle price: the original 4 times a month /6 power exchange given to users is no longer the basic car rights, and the price of all NIO models is also reduced by 30,000 yuan.

　　For consumers, due to the different areas where the NIO power station is located, the electricity and service fees charged will also vary. At the same time, according to the different car habits of the owner, the discounted 30,000 yuan of the lifetime power exchange rights will also reflect different practical values.

　　New Consumer Daily reporters found through interviews that NIO is not the only brand, and other brands of new energy vehicles have also shrunk in their rights to charge and replace electricity. Some industry insiders believe that these changes in strategy are in response to the increasingly fierce competition in the new energy vehicle market.

　　Lifetime free power exchange rights can be "discounted"

　　Does not affect current car owners

　　NIO cars ushered in the first price reduction this year, up to 30,000 yuan. Corresponding to the price reduction, the first owner’s car purchase rights also "depreciated".

　　Li Bin, Founder, Chairperson and CEO of NIO

　　After the news was announced, it triggered a heated discussion. Li Bin, founder, chairperson and CEO of NIO, responded to the adjustment on the NIO community: This adjustment has been discussed internally for a long time, and the opinions and suggestions of some users have been listened to. There are too many aspects to consider, and it is still being deliberated at three o’clock today. Now is the most appropriate time to release, and there must be some thoughtless aspects, and it is impossible to satisfy everyone.

　　Li Bin calculated an account, NIO’s current number of car owners exceeds 330,000, if these owners change cars in the next three years, the price reduction of 30,000 yuan means more than Ten Billion Subsidy.

　　Previously, in order to cultivate users’ power exchange habits, NIO had promoted unlimited free power exchange rights, which were adjusted to 6 free power exchanges per month after August 2021.

　　In April this year, NIO further reduced the rights and interests of the first owner: it involved canceling the free home charging pile, further reducing the number of free power changes to four times, and upgrading the previous NOP + to the official version, with a monthly subscription price of 380 yuan.

　　In June this year, the adjustment directly throws two choices to the owner: to 30,000 yuan car purchase discount, or to enjoy up to 4 times a month of lifelong free electricity exchange, lifetime monthly 8GB free vehicle to everything service, and 10 years of vehicle quality assurance.

　　"If you pay the deposit to buy the new ES6 and ES8 before July 31 this year, you can still enjoy free home charging piles. Before August 1 this year, you can decide whether to choose the 30,000 yuan discount or the’rights upgrade package ‘. Even if you choose the 30,000 yuan discount, NIO will still provide 10 years of unlimited mileage quality assurance for the Sandian system."

　　Liu Yang also added: "For users who have already picked up the car, the first owner’s rights and interests remain unchanged, but they can choose to give up the original free power exchange rights and deduct the purchase price for the new car according to their own needs."

　　NIO used to stick to the bottom line of "no price reduction"

　　But it can’t stop the sales decline

　　NIO founder and president Qin Lihong said at the Shanghai auto show that NIO would not engage in price wars, but pursue one-step pricing. He admitted that NIO’s gross profit margin is not high, and companies with gross profit margins of 30% to 40% may be able to reduce prices appropriately, but NIO will not do so.

　　"No price reduction" used to be one of the two principles Li Bin set for NIO, but the financial data and sales volume made Li Bin’s anxiety palpable.

　　The Q1 financial report of 2023 shows that NIO’s revenue is 10.68 billion yuan, an increase of 7.7% year-on-year., of which the main business revenue of automobile sales is 9.224 billion yuan, a decrease of 0.2% year-on-year.

　　Data show that in the first quarter of this year, NIO deliveries were 31,000 units, an increase of 20.5% year-on-year and a decrease of 22.5% month-on-month. In April this year, NIO new car deliveries were 6,658 units, an increase year-on-year but a decrease of 35.8% month-on-month.

　　Among them, the delivery volume in April and May was only 6,658 and 6,155, less than 7,000 for two consecutive months. In contrast, Li Auto delivered a total of 106,500 new cars from January to May this year, achieving quarterly profit again.

　　In this regard, Li Bin responded positively: "NIO has indeed gone against the tide recently, but it is also expected, because the products are being switched, and the new models ES6 and ES8 have been delivered. The delivery volume will definitely increase gradually. Don’t worry, as for the rumors, don’t pay attention."

　　NIO’s goal for 2023 is to sell 250,000 vehicles and break even in the fourth quarter. So far, the company has delivered 43,900 new vehicles, only 17.6% of the annual task, far from meeting expectations.

　　In order to sell, NIO can only reduce prices in exchange for services.

　　Zhang Yazhi, marketing/Chief Sales Officer at Guangzhou Honda Motor First Sales Co., Ltd., commented: "The price reduction of all NIO models and the separate sale of’lifetime replacement rights’ is a controversial decision, but it is undeniable that due to the large price reduction, it is attractive to those’potential consumers’."

　　Is the NIO owner’s rights upgrade package worth 30,000 yuan?

　　Other brand equities are also shrinking

　　This also raises a question: is it more cost-effective to choose a discount, or is it more cost-effective to choose a "rights upgrade package"?

　　"It all depends on your car habits," Mr. Liu told the New Consumer Daily. "If you use your car more frequently and have a lot of mileage, then the power exchange rights are more suitable for you."

　　NIO staff member Liu Yang explains the issue of electricity replacement charges

　　Meng Wei (a pseudonym), a Beijing-based owner of NIO, told the New Consumer Daily: "I use the car more frequently. I change it about 10 times a month, and I need to pay for it six times a month. It costs about 11,000 yuan a year to change the electricity."

　　According to Meng Wei’s way of using the car, 30,000 yuan can be used for him for about 2.7 years.

　　He added: "The charging method of the NIO power station is based on the difference between the current remaining power and the full power, but I will not change the power every time I run out of power. For example, my ES8 is fully charged at 100 kWh, and when I use only 20 kWh, I need to be charged 80 kWh for electricity and service."

　　New Consumption Daily reporter learned that the NIO power station is located in different areas, and the electricity and service fees charged will also vary. Taking Beijing as an example, the power station in the Shangdian service area in Changping District has an electricity price of 0.73 yuan/kWh and a service fee of 0.53 yuan/kWh; while the power station in Chaoyang District is 1.31 yuan/kWh and a service fee of 0.8 yuan/kWh.

　　According to the calculation, if the battery with a capacity of 100 degrees is exhausted every time, the owner will spend 6,048 yuan and 10,128 yuan per year at the above two charging stations according to the four power changes per month. The time it takes to spend 30,000 yuan is 4.96 years and 2.96 years respectively.

　　The reporter who visited China-Singapore Consumer Daily found that not only NIO, but also the rights and interests of new car users of other brands are shrinking. In fact, in addition to NIO, other new energy vehicle companies are also charging and replacing electricity, more or less shrinking the rights and interests of some owners.

　　XPeng Motors has always insisted that the first owner enjoys a lifetime free charging service, with an annual charging limit of 3,000 kWh. After 2022, the charging limit will be reduced to 1,000 kWh.

　　FAW-Volkswagen has removed the 0 down payment battery rental policy for owners of ID new energy models, and the option rights have also shrunk accordingly.

　　Tesla updated its permissions for Model S/X supercharging service in May. Previously, older Model S/X models enjoyed lifetime free supercharging rights.

　　Only the first owner of the new Model S/X on sale today can enjoy a 3-year free supercharge benefit, and if the old model is replaced with a new model, the lifetime overcharge benefit will be replaced by the 6-year free overcharge benefit for the first owner.

　　Zhang Yazhi told the New Consumer Daily reporter: "From a corporate perspective, the price reduction of all NIO models and the separate sale of’lifetime power exchange rights’ may be to cope with competitive pressure and increase sales and market share. As the competition in the new energy vehicle market becomes increasingly fierce, various companies are adopting different strategies to compete for market share."