After BBA withdrew from the "price war", NIO is also about to adjust its discount rate.
On July 18th, Caixin News Agency reporters learned from multiple NIO sales personnel that starting from July 22nd, the NIO 55/66 model will cancel the 3000/5000 yuan in car discount. NIO 55/66 refers to the four models currently on sale, namely NIO ET5/ET5T and NIO ES6/EC6.
Now the ET5T car is directly discounted by 34000 yuan, and orders after July 21st are discounted by 31000 yuan, a decrease of 3000 yuan; the ES6 car is directly discounted by 38000 yuan, and orders after July 21st are discounted by 33000 yuan, a decrease of 5000 yuan A salesperson said, "The cash and configuration discounts of 10000 yuan for Beijing Jingpai car purchases may also be reduced within this quarter. High quality priced cars will be quickly digested, and policies will gradually decrease
The official response from NIO regarding the discount correction in the terminal market has not been made.
As a member of the first camp of traditional luxury brands, BMW has recently announced its withdrawal from the "price war". BMW China stated that in the second half of the year, BMW will focus on business quality in the Chinese market and support dealers to work steadily. Subsequently, the reporter learned from the terminal that Mercedes Benz and Audi have also adopted the sales strategy of "reducing and stabilizing prices" to provide dealers with a more relaxed environment.
Regarding the ongoing 'price war', some Mercedes Benz dealers have stated that 'if we continue to participate in the' price war 'at any cost, 4S stores will not be able to afford it, and official subsidies will be difficult to sustain'; For NIO, which adopts a direct sales model, although it has achieved sales growth by increasing discounts, its performance has also been constantly under pressure.
According to the financial report, NIO's vehicle revenue in the first quarter was 8.4 billion yuan, a decrease of 45.5% from 15.4 billion yuan in the fourth quarter of 2023, with a delivery volume of 30053 vehicles. This means that its bicycle revenue has dropped to 279000 yuan. From the official guide price, NIO currently has 8 models on sale, with only two models having a guide price below 300000 yuan.
In terms of gross profit margin performance, NIO's vehicle gross profit margin in the first quarter was 9.2%, and the comprehensive gross profit margin was 4.9%, both of which decreased compared to the previous quarter. NIO explained that the main reason was the decrease in average selling price due to the increase in discounts during product switching, changes in product mix, and some offset by the decrease in unit material costs. Meanwhile, NIO still faced a net loss of 5.185 billion yuan in the first quarter.
During the first quarter earnings conference call, NIO Chairman Li Bin expressed his attitude of putting an end to the "price war". Starting from June, NIO will focus on adjusting its product structure, increasing the proportion of first tier high gross profit margin products, and narrowing the policy of short-term promotions. Overall, optimizing gross profit margin is an important task for us in the next stage while ensuring steady sales growth. Li Bin expects the company's gross profit margin for vehicles to return to double digits in the second quarter of this year and continue to improve in the third and fourth quarters.