Nio experienced a 19% surge in new orders in April, attributed to the reduced prices of its BaaS battery rental service, as revealed by a Deutsche Bank survey. This increase in demand is a result of Nio’s strategic pricing adjustments to enhance the appeal of its electric vehicles. Meanwhile, the overall Chinese new energy vehicle (NEV) industry witnessed a 7% rise in new orders compared to the previous year.
What?
Deutsche Bank analyst Wang Bin’s team conducted surveys and interviews with auto dealers to gather insights into the order trends of major EV manufacturers. Nio’s new orders in April rose by 19% sequentially and remained flat year-on-year, driven by a price reduction in its BaaS service. The lowered monthly rental costs for battery packs made Nio’s offerings more attractive to consumers. In comparison, Li Auto experienced an 8% decline in new orders sequentially, while Xpeng saw a 4% increase. BYD’s orders surged by 9% sequentially and an impressive 87% year-on-year.
Why does it matter?
The boost in Nio’s April orders signifies a positive response from consumers to the pricing changes in its BaaS service. By making their electric vehicles more affordable and appealing, Nio has successfully attracted more buyers. On the other hand, Li Auto faced a decline in orders due to consumer hesitation towards their new Li L6 model, while Xpeng’s orders increased following a price cut for their G6 SUV. Additionally, BYD experienced a substantial increase in orders thanks to aggressive price cuts starting in March.
How is it going to shape the future?
The shift in consumer preferences towards more affordable electric vehicles indicates a growing market for sustainable transport options. Nio’s successful strategy of adjusting BaaS prices to drive sales sets a precedent for other manufacturers to consider innovative pricing models. As competition intensifies in the EV market, companies like Xpeng and BYD are also making strategic moves to attract customers through pricing adjustments. This trend towards lower prices and increased demand could pave the way for wider adoption of electric vehicles in the future, driving further innovation and competition in the industry.
Source: https://cnevpost.com/2024/05/07/nio-orders-up-19-apr-deutsche-bank-survey/