According to data, from January to May 2024. one out of every ten new energy vehicles sold in Shanghai is a NIO. In this international metropolis, NIO's market share of new energy vehicles exceeds 10%, ranking just behind BYD and Tesla. When the average transaction price is raised to over 300.000 yuan, NIO's market share in Shanghai from January to May this year has soared to 47%, almost occupying half of Shanghai's high-end new energy vehicle market. Even more encouraging, NIO has surpassed 20.000 monthly sales in both May and June this year, achieving impressive year-on-year growth rates of 98% and 143.9%, respectively. This begs the question: why is NIO, with an average price exceeding 300.000 yuan and not engaging in price wars, becoming increasingly popular?
Reflecting on the Development of New Energy Vehicles in China
Since 2008. after more than a decade of development, the number of new energy vehicles in China has grown from zero to more than half of the global total. The export volume of new energy vehicles is also rapidly increasing. In 2023. the production and sales of new energy vehicles reached 9.587 million and 9.495 million units, respectively, ranking first in the world. As we enter 2024. the Chinese new energy vehicle market is highly competitive, with almost all new energy brands maintaining their competitiveness through substantial price reductions, leading to an intense price war. NIO is the only brand that has not participated in the price war yet continues to maintain upward sales momentum in the high-end pure electric market.
Why is NIO Gaining Popularity Without Engaging in Price Wars?
Through extensive data analysis, I finally understood why NIO, which doesn't engage in price wars, is becoming increasingly popular. This is because NIO focuses on technology rather than price. NIO invests in computing power, energy replenishment, and quality. In short, NIO competes in everything except price.
Technological Advancements
First, NIO has laid out 12 full-stack technologies in the high-end new energy vehicle segment. NIO's full-stack technology includes chips and in-car intelligent hardware, battery systems, electric drive and high-voltage systems, vehicle engineering, full-vehicle operating systems, panoramic connectivity, intelligent driving, intelligent cockpits, smart energy, intelligent manufacturing, artificial intelligence, and global digital operations. These 12 key technology areas meet NIO's research and development needs across nine major elements in three dimensions: smart, electric, and automotive; product, service, and community; multi-brand, multi-platform, and multi-region.
Superior Computing Power
Secondly, in terms of computing power, NIO is currently the only brand to achieve a three-year leading position in computing power and remain up-to-date for five years. As RoboTaxi services become widespread, the 2024 new energy vehicle intelligence arms race is accelerating, especially in urban intelligent driving. Many models with computing power exceeding 100 Tops or even 200 Tops will soon become outdated, and even 500 Tops of computing power will reach a bottleneck within one or two years. These cars become obsolete upon purchase. All NIO models come standard with four NVIDIA Orin-X chips, pre-equipped with 1016 Tops of computing power, ensuring redundancy and supporting continuous intelligent iteration for all models in the coming years, providing users with the best and safest intelligent driving experience.
Leading Energy Replenishment Solutions
Thirdly, NIO offers the industry's top energy replenishment solutions. NIO's energy replenishment options include charging (home charging piles, NIO supercharging piles, destination charging stations, third-party piles, and NIO charging vehicles), battery swapping (NIO battery swap stations), and upgrades (flexible battery upgrades on demand), meeting various travel needs and making charging more convenient than refueling. As of July 2nd, NIO has deployed 2.439 battery swap stations, 2.287 supercharging stations/10.488 charging piles, and 1.615 destination charging stations/12.283 charging piles nationwide, with access to 1.060.410 third-party charging piles. NIO leads the industry in energy replenishment.
Uncompromising Quality
Finally, NIO builds a comprehensive lifecycle quality system "ATQ" (All Time Quality) from the user's perspective. This ensures that products are fully controlled and continuously improved at every stage from definition, design, development, manufacturing, to use, ultimately maximizing user satisfaction and setting a global quality benchmark.
Conclusion
NIO's continuous monthly sales exceeding 20.000 units and its growing popularity are not accidental. They stem from NIO's commitment to technology, its forward-looking market insights, its deep understanding of user needs, and its relentless pursuit of excellence in its energy replenishment system. Best wishes for NIO's continued success.
