Author: Zhang Yi

2022 has been a year full of turbulence and unpredictability. Just when the pain of the lockdown had not completely faded away, people were suddenly plunged into panic about being caught in the “herd” after the lifting of the lockdown.

For all car manufacturers, many problems such as disrupted marketing rhythms and uncertain supply chain ecology are as unknown as not knowing how many employees they will have tomorrow, and fraught with danger.

Against this backdrop, the successful holding of the Guangzhou Auto Show in recent days can only be described as having a bleak color of survival after a disaster.

Some brands consider it as the finale of 2022, drawing a perfect conclusion to the less-than-perfect year. While some brands place themselves on a longer time scale, seeing this Guangzhou Auto Show as a turning point to continue their journey in a new way. NIO is the latter.

Despite the ups and downs in the new energy vehicle market in 2022 due to the uncertainty of the epidemic and supply chain, NIO is one of the few brands that has withstood the pressure and is steadily improving.

In terms of sales, in July 2022, NIO became the sales champion among new energy vehicle brands for the first time, transforming from a second-tier new energy vehicle brand to a first-tier member. As of November, NIO has delivered a total of 144,278 vehicles and is expected to become the first new energy vehicle brand to surpass 150,000 annual sales this year.

In terms of brand, NIO has successfully launched the high-end model NIO S priced between 1.998-3.388 million yuan, further enhancing its brand image and gradually achieving its dream of building a high-end brand.

At the Guangzhou Auto Show this year, with the confidence accumulated over the year, NIO exhibited its NIO S, NIO U-II and NIO V models currently on sale.

At the 2021 Guangzhou International Auto Show, NIO launched its independently developed intelligent safety vehicle platform – “SHANHAI Platform”. A year later, when NIO S, born on the SHANHAI Platform, appeared at this year’s Guangzhou Auto Show, it had a new mission and identity. Jiang Feng, vice president of NIO said: “NIO S will become the challenger of B-class gasoline vehicles in a completely new way.”

The NETA S, dubbed as a disruptor for B-level fuel vehicles, is carrying a significant mission for NETA Automotive to move forward to the high-end market after its debut at the Guangzhou Auto Show.

Although there has been a major shift in the overall direction of the automobile market due to the impact of new energy vehicles, it is undeniable that fuel vehicles are still the mainstream, especially in the B-level car market.

According to related data, the B- and C-level cars, as a whole, have a market of approximately 7 million vehicles, with 50% each above and below the range of 250,000 RMB. Currently, the penetration rate of electrification for the market above 250,000 RMB has reached close to 30%, and it will continue to show strong momentum for growth.

As for the market below 250,000 RMB, it is mainly occupied by the B-end market due to its large overlap with A-level cars, and the private car market has not yet fully opened up.

It is worth mentioning that the orders for the NETA S are surprisingly centered on the market above 250,000 RMB. According to NETA Automotive’s data, 50.7% of users in the NETA S orders have chosen the top-level configuration.

Indeed, NETA Automotive, which has been shouting “building cars for the people” and “technology equality,” has shown sincerity in providing quality materials for its vehicles.

The NETA S is equipped with the Snapdragon 8155 chip as standard across its series, with a voice control coverage rate of over 99%, providing powerful technical support for users to enjoy an extraordinary intelligent cabin.

In terms of intelligent driving, the NETA S can achieve high-level intelligent driving assistance functions such as the NNP NETA High-Speed Navigation Assist and the NTP NETA Memory Parking, covering practical needs in various scenes such as highways, cities, and parking.

In addition, the extended-range version of the NETA S has four operating modes: range extension priority, pure electric priority, ultimate pure electric, and avant-garde energy-saving. Together with the NETA S’s efficient three-in-one range extender, the NETA S can achieve a pure electric range of 310 km and a comprehensive cruising range of 1160 km, surpassing the same level of vehicles, and achieving the goal of covering more driving scenes while reducing more user car-use costs.No matter the driving experience or technological feel, NETA automobiles have applied cost-effectiveness in all aspects of NETA S. With comprehensive strength like this, it’s only natural that they would have the courage to subvert class B fuel cars.

Currently, the b-class fuel car market is still dominated by major joint venture cars such as Liangting, Yichan, and South and North Volkswagen. However, these joint venture car brands are facing difficulties in the process of electrification. Although they have started to introduce new energy vehicles one after another, they have not caused much of a stir in the market.

When choosing new energy vehicles, users no longer think of traditional brands as their first choice. Instead, they think of new forces that are obviously superior in terms of product power.

Although traditional joint venture brands were slow to react to electrification, the technology in this field that they have accumulated can’t be underestimated. At this stage, before these joint venture cars come up with effective products to catch up, it’s undoubtedly the best time for NETA Automobile to subvert the b-class fuel car market and seize the high ground of user awareness.

On November 30th, NETA Automobile officially began deliveries. In the b-class car market, NETA Automobile was about to engage in head-to-head combat with fuel cars.

Almost all of the achievements of NETA Automobile today were supported by the 100,000-yuan NETA V, which has entered the mid-to-high-end market. How much energy can be unleashed from NETA S, and whether it can subvert the b-class fuel car market remains to be seen.

At the same time, with the official delivery of NETA Automobile, the company has also completed the initial layout of high, mid and low end car models. Next year, NETA Automobile will also mass-produce and deliver a sports car, NETA E.

To meet the needs of high, mid and low end users more accurately and efficiently, NETA Automobile will further separate the sales channels of NETA S and NETA E (we have analyzed this in detail, please refer to “Will Independent Channels Help Seize the High-end Market?“). A “Mountain and Sea Network” will be established to promote sales of high-end car models, and further enhance the image of the high-end brand.

At that time, NETA Automobile, with a more complete car model layout, will undoubtedly cast a greater force on the market, and the competition in the new energy track will become more exciting due to the existence of NETA Automobile.

The Future of Electric Power

Although the automobile market has gone through an unstable 2022, new energy vehicles have shown great resilience.From the data in November, although the overall automobile market has shown signs of fatigue, the momentum of new energy vehicles is still going strong, achieving a market share of 33.8%. The growth of new energy vehicles can be said to be beyond everyone’s expectations.

It can be seen that the trend will not change due to temporary turbulence. Although there are often crises in turbulence, it is also full of opportunities for reshuffling and creating heroes.

Although the new energy market has entered the second half of technology systematization and supply chain ecologicalization, turbulence will not be eliminated as time passes. In such an uncertain era, NIO is always “stable.” However, after standing firm in the changing situation, NIO has become more aggressive because of its challenge to fuel vehicles than before.

However, whether NIO becomes more aggressive or not, in the past, NIO has won a place in the market by relying on cost-effectiveness. If it loses this ace in the future, will the market turn its back on NIO?

For NIO, the phrase “never forget the original intention” will never go out of style.

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.