Chinese electric automaker NIO Inc. (HK:9866) revealed Monday its decision to reduce prices across all models and discontinue free battery swapping services for new customers. This move comes as the Chinese automaker grapples with financial losses and lackluster sales, placing them under increasing scrutiny and pressure.
According to a statement by the company, NIO Inc. will reduce prices by CNY 30,000 ($4,200) across its entire lineup, starting June 12. The adjustments will also include the recently updated ES6 and ES8 sports utility vehicles. These adjustments translate to discounts ranging between 6% and 9% on NIO cars.
The company also announced, starting Monday, that they will be discontinuing a promotion that provided free battery-swapping services to buyers who place deposits.
"The adjustments had been discussed internally for quite a while and we took advice and suggestions from some users," Nio Chief Executive William Li said on the company's social media app, referring to the price cuts and the new policy on battery swapping.
"It is the best timing to publish it ... but we can't make everyone happy," he said.
NIO's sales dropped in April and May as the price war in China intensified and overall demand weakened. The company managed to deliver a total of 43,854 vehicles in the first five months of the year.
Shares of NIO are up 4.66% in pre-market trading on Monday.