Author: Shidi
On December 18th, NIO unveiled the brand’s second pure electric sedan, the NIO ET5, at the 2021 NIO DAY.
There are many evaluations of this new car these days, and it is highly praised as the biggest competitor to the Tesla Model 3 and even outperforming the BMW 3 Series. But it seems that labeling it as the strongest competitor to the Model 3 and similar keywords has become commonplace. Every car in the same class regards the Model 3 as its top competitor, whether it can beat it or not is another matter, but the topic must be attractive.
As for outperforming the BMW 3 Series, from the current perspective, intelligence and technology are where the NIO ET5 overtakes the BMW 3 Series. But if there is one reason to convince yourself to give up the BMW 3 Series and wholeheartedly wait for the NIO ET5, perhaps Li Bin’s sentence “I completely don’t understand why everyone still buys gasoline cars now” can instantly “breakthrough” your hesitation.
About the NIO ET5, I believe everyone has heard of it, and we have also done a very comprehensive report at the first time, so we won’t go into detail here. Details: “[Starts at 328,000 Yuan / Delivered in September] This One Article Is Enough for the NIO ET5](https://www.42how.com/post/5910)”.
In terms of product strength, it is really difficult to find obvious weaknesses in the ET5. With a supercar appearance that meets Chinese aesthetics, a simple but luxurious interior, strong electric performance, leading intelligent configuration, and that attractive price, who can resist it?
The ET5 offers two versions, a 75 kWh version priced at 328,000 yuan before subsidies, and a 100 kWh version priced at 386,000 yuan before subsidies, which is also the price for buying out the battery. After all, NIO also has a BaaS battery leasing plan. After adopting it, the starting prices of both ET5 models are lowered to 258,000 yuan, which now looks very sincere, instantly bringing it to the same level as the Model 3, although you still have to pay 980/1480 yuan monthly. But it is understood that the BaaS battery leasing plan is the choice of most ET5 customers.
Of course, even though this is NIO’s “cheapest” model, NIO may not have intended to create an “entry-level” product from the start.
As we all know, NIO has always been famous for its “service” and “fans” operations, which are also evident at every NIO DAY event each year. So simply selling cars based on cost performance does not seem to fit NIO’s business philosophy. But returning to reality, or rather the target audience, most consumers are still oriented towards “cost performance.”
Therefore, when the ET5 integrates “cost performance,” “service,” and “fans,” it is not far from becoming a popular product. This is confirmed by Li Bin’s statement that “this is the most ordered product in history,” as well as the fact that the official APP order page crashed for ten minutes. It is worth mentioning that the last time a product’s popularity caused an APP to crash was the Tesla Model Y at the beginning of this year.
From a perspective of product development, it can be seen that the ET5 has maximized its hardware capabilities and then used the logic of the ES8 being the first car to raise sales and the second car to boost sales between the ES8 and ES6 to package and apply to the ET7 and ET5. ET7 brings in the second-generation platform and NAD, while ET5 reduces some non-essential configurations such as air suspension and Brembo brakes, and then compresses overall costs, which is also an important reason why many people are optimistic about the ET5.
As for who the ET5’s true competitor is, according to Qin Lihong, the ET5 targets luxury gasoline-powered sedans such as the BMW 3 Series and Audi A4L, as well as the unavoidable Model 3, the older brother of the sales charts. However, NIO internally hopes that the ET5 can reach the sales level of the current BMW 3 Series at the peak of its product cycle.
In other words, NIO’s positioning of the ET5 is to become a popular product like the Model 3, but to target sales of luxury gasoline-powered sedans.From the current market share and daily visibility point of view, the price range of 200-300 thousand yuan has been diluted enough by the Model 3, XPeng P7, and BYD Han. However, if we jump to the price range of 300 thousand yuan or more, customers with greater purchasing power demand a product that combines exquisite aesthetics, high-end features, comprehensive energy supplement systems, and intelligent technology. This also represents the biggest market potential for ET5.
ET5 retains the essential characteristics of a luxury brand, with a unique sales model (whole vehicle + BaaS) and the only user service system on the market, as well as a rapidly spreading network of battery swapping stations. Its added value is enough to make luxury brands feel uneasy, and their apparent calmness may just be to maintain their customary high posture.
In addition, while ensuring brand tone and high-performance attributes, Qin Lihong has also expressed his hope that ET5 can resonate with younger and female customers in terms of car style and marketing. Judging from this year’s NIO Day’s main visual and ET5’s multiple interior and exterior color options, it is likely that the proportion of ET5’s young and female potential customers will not be low.
Summary
At the press conference, Li Bin stated that as of now this year, NIO’s battery swapping stations have reached 733, exceeding this year’s expected 700, and will nearly double to 1,300 next year. To some extent, as the speed of battery swapping station promotion continues to increase, NIO’s products will also continue to appreciate, including the undelivered ET7 and ET5.
As for whether NIO ET5 can be blindly purchased, the phenomenon of almost one unit per person at the press conference can offset suspicion of ET5. In fact, in recent days, there has been a lot of controversy between NIO and Tesla owners’ groups, each vying for their own flagship product.
In fact, both products have their unique “personality”. ET5’s product power is unquestionable, and it is not wrong to blindly buy it. However, it is also important to understand that Tesla’s Model 3 has been tested by the market, and its position as the sales leader is hard-won; ET5 has only released presales, during which there may be many consumers who switch from ET7 to ET5, or even cancel their orders altogether.
Therefore, the emotional response of ET5’s current consumers can be considered a harbinger, but the final results will have to wait until September next year to be revealed.Perhaps as some netizens said, the current orders for ET5 have exceeded the delivery capacity for 2022…
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.