NIO founder Li Bin stated that, given the entrepreneurial environment at the time, the success rate of creating a high-end model was greater than that of a ten-thousand-yuan vehicle. If the car was too cheap, many of the latest, expensive technologies couldn't be applied.
NIO, by sticking to the high-end market, has been successful in terms of sales. Li Bin openly said that the combined sales of high-end electric vehicles from brands like BMW, Mercedes-Benz, and Audi were not as high as those of NIO.
As a company established less than seven years ago, NIO's average delivery price exceeds 430.000 yuan, already entering the range of BBA (BMW, Benz, Audi). Despite the high prices, NIO has surpassed these traditional giants in sales, and the reasons behind this are worth exploring.
NIO's Superior Innovative Service Ecosystem
During the era of fuel cars, traditional luxury brands accumulated significant expertise in engine and transmission technologies, especially in large displacement gasoline engines. Even giants like Toyota and Honda couldn't sustain commercial operations for their large displacement products—models like the LFA and NSX were discontinued.
In the era of electric cars, power is less valuable. To drive a large SUV with an internal combustion engine, at least a 6.0L engine is required to achieve the 5-second club. In contrast, most electric cars priced between 300.000 to 500.000 yuan have this capability. The moat that once protected BBA has disappeared, and the standards for high-end cars have been redefined.
NIO positions itself as a high-end brand and has built a comprehensive range of high-standard products, services, circles, social interactions, and emotional connections, giving it strong overall competitiveness.
Stronger Social Attributes
NIO's key advantage is its strong social attributes. While traditional luxury brands like Mercedes-Benz, BMW, and Audi have established a strong presence in the internal combustion engine era, NIO has leveraged the shift to electric vehicles to redefine social interactions for car owners.
In the era of fuel cars, long-distance travel was common. Driving a Mercedes-Benz during the New Year compared to a Jetta could significantly influence social interactions. However, in the electric era, long-distance travel is no longer mainstream, and urban environments have become the main battleground. NIO has precisely targeted the social scenarios of young people, which is one of the key reasons for its rapid rise as a high-end brand.
NIO owners can enjoy high-end leisure spaces at NIO House and invite friends to experience the environment and top-notch coffee made by professional baristas, showcasing their taste and lifestyle. NIO also organizes a series of stylish activities for car owners, offering different experiences and making NIO a representative of a trendy and avant-garde lifestyle.
The Changing Logic of Cars
The logic of evaluating cars has changed in the electric vehicle era. For instance, Ora's Black Cat has succeeded not only due to its core parameters but also because of its design, emotional appeal, and social aspects. The car has become a fashion item and a beloved pet for many women, showcasing personal preferences and style beyond the traditional automotive scope.
Chinese brands have an opportunity to seize this shift in consumer mindset and market layout before joint venture brands fully react, potentially achieving collective breakthroughs.
Conclusion
NIO's success in the high-end market can be attributed to its superior innovative service ecosystem, stronger social attributes, and alignment with new consumer expectations in the electric vehicle era. This positions NIO as a formidable competitor to traditional luxury brands like Mercedes-Benz, BMW, and Audi.
