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NIO's Co-founder: NIO's Target Customer Group is Different to Tesla's
COVID-19 and China
Image Credit: NIO official website

On August 14, Lihong Qin, the co-founder of NIO (NIO:NYSE) made a speech at the 2020 China Auto Forum to explain NIO’s business strategy and market position. According to Lihong, NIO’s model has a label price of CNY 450,000. In comparison, Tesla’s most popular model in the Chinese market has the price of CNY 310,000. The CNY 140,000 gap is a chief reason that NIO has a substantially different target customer group to Tesla. 

NIO sold 50,000 EVs before July 2020. Lihong also announced that it is the first time in history that a Chinese domestic brand that has a model with a price over CNY 300,000 has achieved such sales numbers. He concluded that the new auto age requires not only the cutting-edge technologies of electronic vehicle and autonomous driving, but also modern customer service systems that directly connect manufacturers and end-users. Industrial upgrading is a great chance for Chinese autonomous companies to build premium domestic brands.

Read more about the analysis of NIO's recent performance.

Editor: Luke Sheehan

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