China’s NIO enters four European markets with leasing model

Chinese electric vehicle company NIO will provide products and services to users in Germany, the Netherlands, Denmark and Sweden in a rental subscription model.

According to Caixin.com, NIO released the above information on Saturday (October 8) in Berlin, Germany. NIO launched the sedan model ET7, the SUV model EL7 (ie ES7 in China) and the coupe model ET5 for the European market. The ET7 will be delivered on October 16, 2022, and the EL7 and ET5 will be delivered in January and March 2023, respectively.

According to reports, NIO’s German official website shows that the subscription model is divided into two types: short-term subscription and long-term subscription. Short-term subscriptions, also known as flexible subscriptions, have a minimum duration of one month, and the monthly subscription fee will gradually decrease over time; if the user does not choose to cancel 14 days before the contract expires, the subscription will automatically renew. Long-term subscriptions are fixed subscriptions, ranging from 12 months to 60 months, with a fixed price and lower prices than short-term subscriptions. Long-term subscription users can choose to terminate at the end of the contract period, or automatically switch to short-term subscription after the end of the contract period.

Taking the ET7 with a 75-degree battery pack as an example, its German short-term subscription reference price is 1,549 euros per month, and the long-term subscription reference price is 1,199 euros per month. Prices will be adjusted according to vehicle configuration and usage.

Li Bin, chairman of NIO, said last Saturday that in the long run, the car itself will become a service. NIO launched a “buy a car and rent a battery” business in China earlier, and is now launching a “complete vehicle plus service” in Europe. ‘The subscription model is an attempt to continuously simplify the process of using a car.

Li Bin also mentioned that the competition of the subscription system is about operational capabilities, that is, whether all cars can be ordered. ‘If you don’t consider the infrastructure or the fixed investment in the entire early stage, and only consider the subscription itself, we think it has the opportunity to get better sales. higher gross profit margins.”

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