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On the heels of Q1 losses and tepid sales as the price war in China intensified and demand weakened, Nio (NYSE:NIO) will lower prices for all its models and end free battery swapping services to new buyers, Reuters reported.
The Chinese automaker will cut prices by 30K yuan ($4.2K) for all models from June 12, including its revamped ES6 and ES8 SUVs. Also, it will no longer provide free battery swapping services to buyers who place deposits on Monday and beyond, the report added.
This contrasts Nio’s (NIO) earlier stance when Tesla slashed prices in April. Other automakers followed suit, triggering a price war even as car demand continued to weaken. At the time, Nio (NIO) said it wouldn’t engage in price wars and would instead focus on improving its services.
As Nio’s (NIO) net loss widened in Q1, its investments in battery swapping stations have raised concerns. The firm missed top-line expectations for Q1 and forecast further delivery declines.
“In the face of the changing market, we will observe the dynamics of the operating environment and competition landscape promptly, and continue to strengthen our competitive advantages,” CFO Steven Wei Feng had. “We will stay focused on execution, optimize cost structure, and further improve our operating efficiency.”
Hong Kong-listed shares of Nio rose 6% on Monday.
