Category: Nio

Nio reaches 1,500 swap stations in China as it aims for 2,300 by year-end

's battery swap stations in China have served a cumulative total of more than 24 million times today, averaging more than 50,000 services per day.

(Image credit: Nio)

Nio (NYSE: NIO) has reached a new milestone in the number of battery swap stations in China, as it continues to build its iconic replenishment facility.

Nio today put five new battery swap stations into operation in China, bringing the total to 1,500, 410 of which are located along highways, according to data released today by the electric vehicle (EV) maker.

At the same time, Nio's battery swap stations in China have accumulated more than 24 million services today, averaging more than 50,000 services per day.

On average, a vehicle leaves Nio's battery swap stations with a fully charged battery every 1.8 seconds, the company said, adding that more than 60 percent of NIO vehicles' power comes from these stations.

Currently, 72.44 percent of Nio owners can find a battery swap station within 3 kilometers of their home or office, Nio said.

Here's a video Nio shared on its mobile app about the historical changes in the number of its battery swap stations.

In addition to providing Nio owners with fully charged batteries, battery swap stations are small, distributed energy storage sites.

Nio's 1,500 battery swap stations can store a total of about 1.36 million kWh of energy, saving about RMB 300 million yuan a year in electricity costs in China, considering that electricity costs are lower at night, the company said.

These stations can also participate in load regulation on the grid, helping it accommodate more electricity generated from clean energy sources such as wind and photovoltaics, Nio said.

Nio allows consumers to purchase vehicles that include batteries, or rent batteries without buying them. In addition, the company allows owners who have purchased or leased a 70-kWh or 75-kWh standard-range battery pack the flexibility to upgrade to a 100-kWh long-range pack.

To date, Nio has provided more than 80,000 flexible battery upgrades, it said.

Nio also put 10 supercharging stations into operation today, bringing the total to 1,450, offering 7,156 charging piles. It added an additional 2 destination charging stations today, bringing the total to 1,277, offering 9,048 charging piles.

Nio completed its first battery swap station in Shenzhen on May 20, 2018. Its initial 200 battery swap stations are first-generation facilities, with its first second-generation battery swap station coming into operation on April 15, 2021.

Nio's third-generation battery swap station, unveiled at the Nio Day 2022 event on December 24, 2022, can store up to 21 battery packs, up from 13 in its previous generation and five in the first generation of the facility. These latest-generation stations began operations on April 12.

Nio announced plans late last year to add 400 battery swap stations by 2023, though that plan was raised to 1,000 on February 21.

William Li, Nio's founder, chairman and CEO, said at the time that the company would further accelerate the deployment of battery swap stations, with a goal of having more than 2,300 battery swap stations in China by the end of 2023.

The company will deploy about 100 battery swap stations in June and more quickly thereafter, which will help boost sales, Li said during Nio's first-quarter earnings call on June 9.

Nio has added a total of 52 battery swap stations so far this month, according to data monitored by CnEVPost.

Nio added a battery swap station in the Netherlands on June 22, bringing the number of such stations in the country to six.

To date, Nio has 17 battery swap stations and 8 charging stations in Europe.

Nio swap station count update: 5 added, total 1,500

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NIO to start new ES8 delivery on Jun 28, cuts price of top trim by $1,400

Show cars of the new ES8 became gradually available in showrooms starting June 24, and NIO added more features to the model as standard.

(Image credit: NIO)

NIO (NYSE: NIO) has announced delivery schedules for the new ES8 and reduced the price of the highest-priced version by RMB 10,000 ($1,400) as delivery of the flagship SUV approaches.

The company said today that show cars of the new ES8 became gradually available in NIO showrooms beginning June 24, and the model will allow consumers to lock in orders, test drive and begin delivery on June 28.

NIO launched the new ES8 on NIO Day 2022, December 24, 2022, the company's transition to the NT 2.0 platform for its first production vehicle.

With a length, width and height of 5,099 mm, 1,989 mm and 1,750 mm respectively, and a wheelbase of 3,070 mm, the new ES8 targets the market for luxury SUVs, including Land Rover.

It is powered by NIO's second-generation electric drive platform with a maximum drive power of 480 kW and maximum torque of 850 Nm, and can accelerate from 0 to 100 km/h in 4.1 seconds.

NIO is offering three options for the ES8, including the regular, Executive and Signature editions. Here is the pricing at launch:

Including the battery, the regular version of the new ES8 starts at RMB 528,000 for the standard range version with the 75-kWh battery. The 100-kWh version starts at RMB 586,000. If consumers rent the battery under BaaS solution, they will both cost RMB 458,000, and the monthly battery rental fees are RMB 980 and RMB 1,680 respectively.

Including the battery, the starting price for the two range versions of the new ES8's Executive Edition is RMB 548,000 and RMB 606,000 respectively. Both start at RMB 478,000 under BaaS solution, and the monthly battery rental costs RMB 980 yuan and RMB 1,680 yuan respectively.

The signature version of the model is only available with the 100-kWh battery pack, starting at RMB 638,000 and RMB 510,000 in BaaS mode, with a monthly battery rental cost of RMB 1,680.

On June 12, NIO made the battery swap benefits, previously free several times a month, optional, thus reducing the price of all models by RMB 30,000.

Following this move, the starting price of the new ES8, including the battery, becomes RMB 498,000 for the regular edition, RMB 518,000 for the Executive Edition and RMB 608,000 for the Signature Edition.

Notably, NIO announced today that the price of the Signature Edition of the new ES8 has been adjusted to RMB 598,000, a further reduction of RMB 10,000.

In addition to the price reduction, NIO has added an in-car refrigerator and 22-inch forged wheels as standard for the Signature Edition of the ES8.

The other two versions of the new ES8 also receive added features, with the Executive Edition receiving additional Nappa interior trim and a refrigerator as standard, and the Regular Edition receiving additional Nappa interior trim as standard.

NIO models no longer come standard with free battery swaps several times a month, and consumers who wish to get this benefit when purchasing the new ES8 will now need to pay an additional RMB 30,000.

($1 = RMB 7.1795)

NIO offers new options for ET5, ES7 and new ES8

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NIO welcomes China’s move to extend tax breaks for NEV purchases

From now until 2027, pure electric vehicles will continue to enjoy purchase tax incentives, which will give vehicles a significant advantage over fuel-powered luxury vehicles in terms of purchase costs, NIO said.

(Image credit: CnEVPost)

China today announced details of an extension of tax incentives for new energy vehicle (NEV) purchases, and NIO (NYSE: NIO) welcomed the move.

From now until 2027, pure electric vehicles (EVs) will still enjoy purchase tax incentives, which will give NIO vehicles a huge advantage over fuel-powered luxury vehicles in terms of purchase costs, the electric vehicle (EV) maker said in a comment shared with CnEVPost.

With the new EV purchase tax policy in place, NIO's body-battery separation model could significantly help consumers lower the cost of purchasing a vehicle and reduce spending on purchase tax, it said.

The continuation of the purchase tax incentives is a great boon to the shift from fuel vehicles to NEVs and to stimulate auto consumption, NIO said.

Earlier today, China's Ministry of Finance announced that NEVs with a purchase date between January 1, 2024, and December 31, 2025, will be exempt from vehicle purchase tax, but the tax exemption will not exceed 30,000 yuan ($4,170) per vehicle.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with the tax reduction not exceeding RMB 15,000 per vehicle.

The latest policy continues to provide additional support for models like NIO that are battery swap enabled.

When consumers purchase a NEV, if the invoice for the car and the battery are separate, the taxable price is the price of the body without tax, according to the Ministry of Finance's announcement.

NIO's (NYSE: NIO) peer (NASDAQ: LI) also voiced support for the new policy earlier today.

Li Auto aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion by 2025, Li Xiang, the company's founder, chairman and CEO, wrote on Weibo.

China has provided an additional four years of stable policies, which is great and leaves Li Auto's team with no excuse not to meet its strategic goals for 2025, Li said.

By early 2026, Li Auto's ability to meet the goal will be proven, he said.

($1 = RMB 7.1935)

BREAKING: China extends full purchase tax exemption for NEVs until end of 2025

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NIO says Abu Dhabi investment took just 3 weeks from talk to deal

The partnership, which went from discussion to agreement in just three weeks, demonstrates Abu Dhabi's commitment to investing in technology innovation and clean energy transformation, said.

(Image credit: CnEVPost)

NIO (NYSE: NIO) announced yesterday that it has received an investment of about $1.1 billion from CYVN Holdings, an Abu Dhabi government fund, to strengthen its balance sheet and support business growth.

In an article posted on its mobile app, William Li, founder, chairman and CEO of NIO, provided some details about the deal.

The partnership, which went from discussion to agreement in just three weeks, demonstrates Abu Dhabi's commitment to investing in technology innovation and clean energy transformation, and ultra-efficient decision-making and execution, Li said in an article posted on the NIO App yesterday.

They have a vision and execution that is highly aligned with NIO's Vision, Action philosophy, Li said.

"I believe the partnership will further drive the vision of Blue Sky Coming to fruition at a sooner date," Li added.

NIO signed a share subscription agreement on June 20 with CYVN Holdings, which will invest a total of about $1.1 billion in the Chinese electric vehicle (EV) company through the purchase of additional new shares in NIO and the transfer of shares from an existing shareholder.

In addition to the investment, the two companies will also strategically collaborate on NIO's international business, Li said.

The investment reflects NIO's unique value in the global smart EV industry and will provide continued momentum for the company's long-term growth, Li said in the NIO App article.

CYVN Holdings' investment in NIO comes at a time when the global EV market, particularly in China, is growing rapidly, resulting in a diminishing reliance on oil.

Oil nations, particularly Saudi Arabia, are already actively embracing this change.

On December 7, 2022, Chinese new energy vehicle (NEV) startup Enovate Motors signed a deal in Saudi Arabia with local company Sumou Holding to jointly build a NEV production plant there.

The two parties will spend a total of about $500 million in two phases in Saudi Arabia to build a production and R&D base with an annual capacity of about 100,000 NEVs, and the facility will be the first Chinese-branded NEV production base in the country, Enovate said at the time.

On June 12, a statement from Saudi Arabia's state news agency said the Saudi Arabian Ministry of Investment had signed a $5.6 billion deal with Chinese EV company Human Horizons to collaborate on developing, manufacturing and marketing vehicles.

BREAKING: NIO secures $1.1 billion investment from Abu Dhabi fund

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NIO’s William Li attends high-level Sino-German meetings as Chinese Premier visits Europe

was invited to attend a roundtable of Sino-German entrepreneurs and was the only smart electric vehicle company present.

(Image credit: CnEVPost)

William Li, founder, chairman and CEO of NIO (NYSE: NIO), was one of the entrepreneurs who accompanied the Chinese Premier to Europe and participated in high-level Sino-German meetings.

On June 20 local time, 15 Chinese and German companies, including NIO, State Grid, Industrial and Commercial Bank of China and SenseTime, were invited to attend a roundtable of Sino-German entrepreneurs in Berlin, NIO Europe vice president Zhang Hui announced yesterday on the company's mobile app.

NIO is the only smart electric vehicle (EV) company among them, and Li participated in the roundtable, Zhang said, adding that the NIO CEO also attended the 11th China-Germany Economic and Technical Cooperation Forum on the same day.

As an EV company that insists on global development, NIO has developed a deep presence in Germany, Zhang said.

The company set up a global design center in Munich in 2015 and an innovation center in Berlin in 2022 to explore smart cockpits, autonomous driving and energy technologies.

NIO currently employs more than 1,300 people in Europe, mostly in Germany, Zhang said, adding that the company is creating more jobs in Germany as its research and development business deepens.

Meanwhile, NIO has established good relationships with German companies, including ZF, Continental and Bosch, and is actively seeking opportunities for broader supply chain cooperation, he said.

NIO has now entered five European countries -- Germany, the Netherlands, Denmark, Sweden and Norway -- and is delivering models locally including the ES8, ET7, EL7 and ET5.

The company has six NIO Houses, five NIO Spaces and 49 service centers overseas. It also has 16 battery swap stations, 8 charging stations, 26 charging piles overseas, and access to over 400,000 overseas third-party charging piles overseas.

In Germany, NIO has three NIO Houses, located in Berlin, Frankfurt and Dusseldorf, Zhang noted.

Chinese Premier Li Qiang is visiting Europe, his first trip since the formation of the new Chinese government. Li was previously the party chief in Shanghai, where NIO is headquartered.

Premier Li and German Chancellor Olaf Scholz jointly attended the Sino-German entrepreneur roundtable on June 20, local time, and exchanged views with more than 30 business representatives, according to a report by Xinhua.

The governments of both sides should create a favorable environment and stable expectations for business operations so that enterprises can study and respond to risks in accordance with market and economic laws, and achieve mutual benefits and win-win situations in open cooperation, Li said.

China will continue to expand its opening to the outside world and continue to build a market-oriented, rule of law and international business environment, Li said, adding that he hopes Germany will continue to keep its market open and create a fair, transparent and non-discriminatory business environment for Chinese companies to invest in Germany.

There is a vast space for Sino-German cooperation in fields including the digital economy, artificial intelligence, and green development, and with the joint efforts of entrepreneurs from both countries, Sino-German cooperation will surely continue to achieve new results, he said.

BREAKING: NIO secures $1.1 billion investment from Abu Dhabi fund

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BREAKING: NIO secures $1.1 billion investment from Abu Dhabi fund

This article is being updated, please refresh later for more content.

(Image credit: CnEVPost)

(NYSE: NIO) has received more than $1 billion in investment from an Abu Dhabi sovereign fund to strengthen its balance sheet and support business growth.

On June 20, NIO signed a share subscription agreement with Abu Dhabi investment house CYVN Holdings, which will invest a total of about $1.1 billion in the Chinese electric vehicle company through an additional new share issue and transfer of old shares, according to a statement.

CYVN Holdings is an Abu Dhabi government majority-owned investment vehicle focused on strategic investment in the advanced, smart mobility sector and is committed to partnering with global industry leaders in this area.

The investor will subscribe for a total of $738.5 million in cash for 84,695,543 shares of NIO's newly issued Class A ordinary shares at a purchase price of $8.72 per share.

The transaction price is the volume-weighted average price of NIO's Class A ordinary shares on the New York Stock Exchange over the seven consecutive trading days immediately preceding June 19.

The transaction is subject to customary closing conditions and is expected to close in early July.

CYVN Holdings has agreed not to sell, transfer or dispose of any shares acquired in the investment transaction for six months after closing, according to a statement from NIO.

In addition, CYVN Holdings has entered into a share purchase agreement with an affiliate of Tencent, an existing shareholder of NIO, to purchase 40,137,614 shares of NIO's Class A ordinary shares.

Upon completion of the investment transaction and the secondary share transfer, CYVN Holdings will own about 7.0 percent of the total issued and outstanding shares of NIO.

Following the closing of the investment transaction, CYVN Holdings will have the right to nominate a director to the board of directors of NIO so long as it continues to beneficially own no less than 5 percent of the company's outstanding share capital.

Below is NIO's press release, as the CnEVPost article is being updated.

NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the premium smart electric vehicle market, today announced that it has entered into a share subscription agreement with CYVN Holdings L.L.C., an investment vehicle majority owned by the Abu Dhabi Government strategically focused on advanced and smart mobility (the “Investor” or “CYVN Holdings”), pursuant to which the Investor will invest an aggregate of US$738.5 million in cash to subscribe 84,695,543 newly issued Class A ordinary shares of the Company at a per share purchase price of US$8.72, being the volume weighted average price of Class A ordinary shares (as adjusted for the American depository share-to-Class A ordinary share ratio) on the New York Stock Exchange over the seven consecutive trading days immediately preceding June 19, 2023 (the “Investment Transaction”).

The Investment Transaction is subject to customary closing conditions and the closing is expected to take place in early July 2023.

The share issuance is conducted as a private placement in reliance on Regulation S under the Securities Act of 1933, as amended, (the “Securities Act”) to be exempt from registration. The Investor has agreed not to sell, transfer or dispose of any shares acquired in the Investment Transaction for six months after the closing.

Concurrently, the Company is aware that the Investor has entered into a share purchase agreement with an affiliate of Tencent (the “Existing Shareholder”) pursuant to which the Investor will purchase 40,137,614 Class A ordinary shares of the Company beneficially owned by the Existing Shareholder (the “Secondary Share Transfer”).

Upon the closing of the Investment Transaction and Secondary Share Transfer, the Investor will beneficially own approximately 7.0% of the Company's total issued and outstanding shares.

Upon or after closing of the Investment Transaction, the Investor will be entitled to nominate one director to the Company's board of directors so long as it continues to beneficially own no less than 5% of the Company's outstanding share capital. Such appointment will be subject to the requirements of applicable laws, regulations, listing rules and the Company's articles of association.

In addition, NIO and the Investor agreed to cooperate to jointly pursue opportunities in NIO's international business following the closing of the Investment Transaction.

“The strategic investments from CYVN Holdings demonstrate NIO's unique values in the smart electric vehicle industry. The Investment Transaction will further strengthen our balance sheet to power our continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness,” said William Bin Li, founder, chairman and chief executive officer of NIO.

“In addition, we are excited about the prospect of partnering with CYVN Holdings to expand our international business. With the vision of Blue Sky Coming, we will continue to strive for technological breakthroughs and user experiences beyond expectations, contributing to a more sustainable future for the globe.”

“Our strategic investments in NIO are driven by our appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market,” said Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings.

“We are excited to develop strategic partnerships with NIO, and are fully committed to providing strategic value that will support NIO's international business growth. We will join hands with NIO to drive the global energy transition and sustainable growth for the whole humanity.”

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China NEV insurance registrations for week ending Jun 18: Tesla 14,500, Li Auto 7,800, NIO 2,000

Correction: Fixed the error in the last table.

was 2,000 units last week. Its sales from June 1 to June 18 were 4,800 units.

In the week of June 12 to June 18, sold 7,800 units, continuing to lead among China's new car makers, the company said today on Weibo.

As of June 18, Li Auto had sold 19,800 units this month, and the company will aim to achieve a monthly sales target of more than 30,000 this month, it said.

Li Auto didn't explain what that weekly sales tally was based on, but apparently they were insurance registrations. The company had suspended sharing those numbers in May, but has since resumed sharing them.

Li Auto delivered 28,277 vehicles in May, up 145.97 percent year-on-year and up 10.11 percent from April, the third consecutive month to exceed the 20,000-unit mark.

Li Auto's current least expensive model, the five-seat Li L7, achieved its second consecutive month of more than 10,000 deliveries in May, the company said on June 1.

On Li Auto's Family Tech Day event on June 17, the Li L7 sold more than 1,000 units in a single day for the first time, the company's founder, chairman and CEO Li Xiang said on June 18.

(NASDAQ: TSLA) sold 14,500 units in the week of June 12 to June 18, lower than the 16,400 units sold in the previous week, according to figures shared by Li Auto.

From June 1 to June 18, Tesla sold 40,600 units in China, the highest number of vehicles, including internal combustion engine vehicles, for premium brands.

NIO (NYSE: NIO) was 2,000 units last week, up from 1,500 units the week before.

Between June 1 and June 18, NIO sold 4,800 units.

NIO officially launched the new ES6 on May 24 and rolled out the ET5 Touring on June 15.

The company had produced some of the vehicles in the designer-recommended configuration combinations for quick delivery prior to the launch of both models.

Deliveries of the new ES6 began on the night of the May 24 launch, and deliveries of the ET5 Touring began on June 16.

(NYSE: XPEV) was at 1,600 units last week and 3,800 units from June 1 to June 18.

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NIO completes key regulatory process for its 1st phone model

's first phone model will be released and begin deliveries in the third quarter, William Li said in April.

NIO (NYSE: NIO)'s first mobile phone model completed radio clearance in China, paving the way for its launch later this year.

The electric vehicle (EV) maker's mobile device, model number N2301, received radio approval on June 19, according to a disclosure on the website of China's Ministry of Industry and Information Technology.

The device will support 2G, 3G, 4G and 5G network standards, and will also support UWB (Ultra Wide Band), a key feature when using a phone as a car key.

The disclosure focuses on the radio specifications for the NIO mobile device, covering frequencies, transmit power, and obtaining the approval is a key process to enable it to be sold in China.

In late March 2022, William Li, NIO's founder, chairman and CEO, confirmed that the company would venture into phone making.

A key driver of NIO's decision was that, in the rise of smart cars in China, owners' experiences are increasingly dependent on a direct and seamless connection between their phones and vehicles.

In March last year, Li told a group of car owners that Apple was closed to the automotive industry, for example, NIO's second-generation platform models come standard with UWB, but Apple does not open up the interface.

NIO has to study smartphones and car-centric smart devices from the user's interest and experience, he said at the time.

On April 1, Li said during a Chinese EV industry forum that NIO's first phone model would be launched and start deliveries in the third quarter.

NIO unveiled the new ES8 at its NIO Day 2022 event on December 24, 2022, and an introductory image of the model shows two cell phones in the second-row center armrest.

The wireless charging pad can wirelessly fast charge two phones simultaneously at 40 W, according to the text on the image.

In an internal speech at NIO last November 15, Li said the launch of the phone was a decision based on 5-10 years of long-term strategic thinking, according to local media outlet LatePost at the time.

Internal speech: William Li on NIO's new businesses, and why it's on right side of trend

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China’s EV sector at crossroads as NIO joins bloody price war

's about-face highlights the plight now facing China's EV makers, as they try to navigate an unexpected turn in the road that analysts say could stretch on for some time to come.

This article by Trevor Mo was first published in The Bamboo Works, which provides news on Chinese companies listed in Hong Kong and the United States, with a strong focus on mid-cap and also pre-IPO companies.

(Image credit: CnEVPost)

Key Takeaways:

NIO cut its prices last week, reversing its previous position, in response to slowing sales growth over the past two months after many of its rivals made similar reductions.

Smaller firms could be the most vulnerable if the current EV price war drags on, due to their thinner margins compared to larger peers.

Used to being praised for its cutting-edge electric vehicles (EVs), NIO Inc. (NIO.US; 9866.HK) found itself in unfamiliar terrain last week when it became the target of online sarcasm after announcing it would slash prices for all of its electric vehicles (EVs) by 30,000 yuan ($4,209).

Just two months earlier, CEO William Li had proclaimed he would never join the price war now throttling his sector, saying such blind cuts would only lead to "unhealthy competition".

NIO's about-face highlights the plight now facing China's EV makers, as they try to navigate an unexpected turn in the road that analysts say could stretch on for some time to come. Smaller firms are in the most difficult bind since further cuts will further erode their already thin margins. But refusing to stay in the cutting game risks losing sales to industry heavyweights such as (1211.HK; 002594.SZ) and (TSLA.US).

We'll look shortly at how the recent price war is affecting China's smaller homegrown EV makers, which also include (LI.US; 2015.HK), Leapmotor (9863.HK) and (XPEV.US; 9868.HK), as well as non-listed peers like . But first, we'll shift into reverse to see how the ongoing months-long price war has evolved.

Things began last October when Tesla cut prices for its Model 3 and Model Y by as much as 9 percent, then further slashed prices as much as another 13.5 percent in January.

Those cuts prompted others to follow suit, with XPeng announcing reductions in January for its G3i SUV and P5 and P7 sedans by as much as 13 percent. BYD joined the following month by cutting the price of its 2021 Han EV model by 20,000 yuan in Beijing, and the 2021 Qin EV by 15,000 yuan.

Other brands, from domestic heavyweights like GAIC, SAIC, and FAW, to foreign names like Ford, Volkswagen, BMW, and Toyota, also joined the bloodbath. The cuts followed Beijing's retirement of one of the main government incentive programs for EV purchases at the end of last year, which previously helped to double the sector's sales in 2022.

The price war later spilled into the fossil fuel vehicle sector as well, with automakers rushing to clear inventory before a new set of stringent emissions standards takes effect in July.

As of late March, more than 40 carmakers had gotten sucked into the Chinese price war by offering discounts on electric and gas-powered vehicles, according to local media outlet Yicai, which cited data from third-party consultancy Positioning Pioneers.

As the cutting gained traction, about 20 percent of passenger cars being sold in China came with discounts of 10,000 yuan or more, according to PingWest, another local news outlet, citing data compiled by research group China Auto Market.

Driving consolidation

The price war is already showing signs of driving consolidation in a crowded sector whose growth was fueled in no small part by strong government incentives that are now being rapidly phased out.

As the war drags on, bigger players are increasingly cementing their leading positions, while smaller ones face sluggish sales. In the first four months of this year, three companies – BYD, Tesla and – held a combined 50.1 percent share of the pure-battery EV market, up from 42.7 percent in the same period a year ago, according to the China Passenger Car Association (CPCA). BYD led the trio with 24.9 percent of the market, up 7.4 percentage points year-on-year.

As the big names gained share, many smaller brands moved in the opposite direction. XPeng reflected that group, symbolically dropping off the list of the top 10 EV makers in the first four months of this year.

NIO managed to increase its share by 0.3 percentage points, but its 27.1 percent growth rate in vehicle deliveries during the period was far behind BYD and Tesla, which each recorded more than 60 percent year-on-year growth.

Facing such slowing growth, it comes as little surprise that NIO has finally joined the price war. But it also remains to be seen whether the move will significantly boost its sales.

XPeng's experience suggests otherwise. Its massive price cuts in January failed to lift sales, and the company's total vehicle deliveries actually plunged by 47.3 percent in the first three months of this year.

Another smaller EV startup, Leapmotor, announced similarly dismal results after rolling out its own massive price cuts. The company's vehicle deliveries tumbled by 51.3 percent in the first quarter to 10,509, according to its latest quarterly report.

Not all smaller players have suffered. Li Auto – the last holdout in the intensifying price war – delivered 52,584 vehicles during the first quarter, up 65.8 percent year-on-year. The company also recorded a 933.8 million yuan net profit for the period, making it one of the few EV makers that has been able to operate profitably. Both BYD and Tesla recorded profits during the period, while NIO, XPeng, and Leapmotor all lost money.

The smaller companies' dismal bottom-line performance is reflected in their profit margins that sharply trail their larger peers. NIO, XPeng, and Leapmotor all recorded gross profit margins of less than 2 percent during the first quarter, well behind BYD's 17.9 percent and Tesla's even higher 19.3 percent for its EV business.

That brings us back to the dilemma now confronting smaller firms that will find it increasingly difficult to wage a prolonged price war that sucks up their dwindling cash hordes, with skeptical investors unlikely to provide fresh funds.

NIO's cash fell to 37.8 billion yuan by the end of March from 45.5 billion three months earlier, while XPeng's fell to 34 billion yuan from 38 billion yuan over the same period. Those declines are likely to continue, or even accelerate if the price war continues.

The war has already left a number of the smallest major EV makers teetering on the brink of insolvency. One of those is WM Motor, a former highflyer that is currently facing a financial crunch that saw it reportedly slash salaries and implement mass layoffs late last year and into 2023. Data from the CPCA showed that WM Motor sold just 457 vehicles in the first two months of 2023, down 92.4 percent from the year-ago period.

BREAKING: NIO cuts starting prices by $4,200 for all models and makes battery swap benefits optional

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