(Yicai Global) March 17 -- Chinese electric vehicle startup Nio is offering suppliers an exclusive discount on some of its older models this month, as automakers from Tesla to Volkswagen slash prices in China, the world’s biggest auto market.
Nio is offering suppliers a discount on models based on its old NT1.0 platform, following a promotion for retail customers last month, an insider at the Shanghai-based company told Yicai Global. The few NT1.0-based vehicles remaining in Nio’s inventory will be available only to suppliers, the person added.
Nio offered up to a 7 percent discount on some of its vehicles to Mando, based on which the auto parts supplier will offer a 30 percent price reduction to its suppliers, according to a leaked email sent to Schaeffler Greater China, a bearings maker.
Based on the information, Mando's suppliers will receive a discount of up to 35 percent when buying Nio EVs. The carmaker declined to comment on the contents of the email.
The price war began in China’s new energy vehicle sector after Tesla cut its prices at the beginning of the year. After their sales fell, more than 30 auto brands have followed suit.
Early last month, Nio offered a 10 percent discount to buyers of its older ES8, ES6, and EC6 models. The three vehicles will be upgraded to the new generation, so the firm offered a preferential policy per the model's service life and status, Qin Lihong, Nio co-founder and president, said at the time.
The lower prices annoyed some Nio customers who had bought these models previously, leading Nio to pare back the discounts.
Nio's auto shipments jumped 31 percent to 20,663 during the first two months of this year from a year earlier.
Editors: Liao Shumin, Martin Kadiev