• NIO brings its vehicles to four new European countries
• ET7, EL7 and ET5 are not to be sold here, but rather rented out for the time being
• With NIO Subscription, the car manufacturer wants to change the industry in the long term
At the NIO event in Berlin on October 7th, the Chinese vehicle manufacturer NIO presented three vehicles that are now coming to Germany, Denmark, Sweden and the Netherlands: NIO ET7, NIO EL7 and NIO ET5. In addition to the vehicles themselves, the startup presented its new NIO Subscription concept at the launch event. With the subscription model, NIO wants to work closer to the customer.
80 percent of Europeans could be interested in leasing services
NIO founder and boss William Li explained to a Chinese news site why Germany chose NIO Subscription. In some regions of Europe, leasing has a market share of around 60 percent in the automotive industry, which is significantly more than in China, for example. This is reported by the information portal CnEVPost. According to surveys, only 20 percent of Europeans are interested in owning their own car – NIO wants to reach the other 80 percent with the subscription model. In order to make the NIO experience in Germany, Denmark, Sweden and the Netherlands particularly pleasant, according to a NIO press release, the monthly leasing price always includes an “all-round carefree package” in addition to 1,250 kilometers. This service includes vehicle registration, winter tyres, collection and return of the vehicle for repairs and insurance. In total, the subscription for the NIO ET7 in Germany costs 1,199 euros per month for a term of 36 months, and 1,295 euros for a term of 12 months. Under the motto “Flexibility is the new premium”, the notice period is two weeks at the end of the month and the term can be flexibly agreed between one and 60 months.
NIO wants to innovate to improve the leasing experience in Europe
In China there is no NIO Subscription (yet). Instead, the cars are sold there and only the batteries are rented out. In addition to the market share, Li gives the Chinese media other reasons for not pursuing this system here, but instead offering a leasing model: In Germany, for example, there is still a great deal of room for improvement in the leasing service for electric cars. NIO wants to seize this opportunity and improve the experience for customers with new innovations. Unlike other startups, they don’t want to rely on third-party providers for this, but rather take the service into their own hands – despite the many difficulties that seem to go hand in hand with setting up a leasing program.
This sets the carmaker apart from its competitor Tesla. Elon Musk’s company relies on the startup ALD for vehicle rental in Germany. Once the leasing service has been successfully introduced, Li said, a traditional NOK sales offer could also be introduced later. Turning a sales service into a car rental is a lot more complicated than setting up a sales after the fact. The need for leasing models is lower in Norway, where NIO’s regional strategy includes selling the vehicles.
The first NIO rental cars are already being delivered to customers
The NIO press release quotes Li: “Our compelling products, pioneering charging and battery swapping services, and innovative and flexible subscription models will transform the electric vehicle landscape. Our commitment to the region marks the beginning of the next chapter in our global evolution.” As of the end of September, there are around 250,000 NIO users worldwide. In Europe, users have access to 380,000 charging points – but there are also plans to build their own power-swap stations for quick battery replacement. The NIO ET7 has been delivered to German customers since mid-October, the other models can be ordered and should be on German roads from January or March next year. According to the company website, delivery is free for customers who order their vehicle before the end of December.
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