Nio Inc. is taking bold steps to boost sales in March by extending its 7-year low-interest financing plan and introducing tax perks for its Onvo sub-brand. This move comes as Chinese EV manufacturers face sales pressure in the first quarter, with a particular focus on countering seasonal market weakness and the phase-out of subsidies. The company's aggressive promotional measures are a response to these challenges, aiming to attract customers and maintain market share.
For the Nio main brand's lower-priced models, including the ET5, ET5 Touring, ES6, and EC6, consumers can take advantage of the 7-year financing plan with an ultra-low annualized interest rate of 0.49%. The down payment threshold has been lowered to just 38,000 yuan ($5,540) through the BaaS program. This financing plan was initially introduced on February 1 and was set to expire on February 28, but it has now been extended to March.
Nio's Onvo sub-brand is also offering a significant purchase tax subsidy of up to 10,262 yuan for buyers in March. This subsidy is available for the Onvo L60 and L90 SUVs, and purchasers can also benefit from the 7-year low-interest financing plan. These incentives are part of a broader trend in the Chinese market, where automakers are using ultra-long-term financing support as a competitive strategy, especially as regulators discourage destructive price wars.
Tesla was the first to offer 7-year loans in China in January, and domestic players like Nio and Xiaomi have followed suit. The sales pressure faced by Chinese EV manufacturers is evident, with Onvo brand deliveries dropping 62% month-on-month in January due to the scaling back of national car purchase incentives. However, Nio's main premium models, particularly the ES8 SUV, demonstrated resilience with nearly double the January deliveries year-on-year, totaling 27,182 units. The company is expected to announce its February delivery figures soon, building on the milestone of surpassing 60,000 deliveries in February.
