Author | Wang Lingfang
Editor | Qiu Kaijun
NIO ES8 is the new force model that breaks through the sales volume of 100,000 in the fastest time of 21 months.
“21 months is not our best level.” On August 22nd, Chen Yinbin, Senior Director of UV Brand Department of NIO Automotive Brand Center, was a bit “Versailles” at the media communication meeting where NIO ES8 sales exceeded 100,000.
“If everything is ready, we believe we can sprint at a higher speed to break through the sales volume of 100,000, and the next 100,000 will be faster.”
NIO ES8’s consumers are mostly young people who follow fashion trends, with a large proportion of young female users living in first- and second-tier cities.
To keenly capture consumer demand and cater to it, perhaps it is an important reason why NIO ES8 can break through the A0 market first.
Stabilize the A0 Market
Starting from last year, experts represented by Ouyang Minggao, academician of the Chinese Academy of Sciences, and Cui Dongshu, Secretary-General of the China Passenger Car Association, have predicted the outbreak of the A0 market.
This year, A0 small cars represented by NIO ES8 have indeed ushered in explosive growth. According to data from the China Passenger Car Association, in July, the wholesale volume of A0 pure electric vehicle models reached 89,000, accounting for 21% of pure electric vehicles, with a year-on-year increase of 346%, which is the highest growth level of vehicle categories.
With the gradual expansion of the new energy vehicle market scale and the gradual decrease in product costs, this upward penetration is natural. Consumers can buy models with larger space and better intelligence for less than 100,000 yuan, which satisfies more functions besides transportation. Therefore, the A0 level ushered in an outbreak period.
Before NIO ES8, the A0 level was a relatively blank area, and the number of pure electric vehicles at this level was countable. According to data from the China Passenger Car Association, before 2020, this level only had a scale of tens of thousands.
According to data provided by NIO, in the first seven months, NIO ES8’s market share in the A0 pure electric subdivision market reached 12.5%.
In addition to NIO ES8’s outstanding performance among new forces, its performance in the entire pure electric vehicle market is also impressive. In the first half of 2022, NIO ES8 ranks 11th in pure electric terminal sales.
Product Strategy: “Big hitting small”The key to the cars under RMB 100,000 is the cost performance.
NETA V’s strategy is to “play big” in terms of space, performance, and intelligence, and to be “bigger” and better than its peers in these areas.
Launched in late 2020, NETA V was one of the few small SUV models under RMB 100,000 at the time, with significant advantages over its competitors in terms of space, performance, and intelligence.
Firstly, in terms of body size, NETA V is larger than micro cars like Changan Benni and Chery Ant. In terms of power, with a total power of 70 kW and a total torque of 150 N·m, its electric motor is also among the top in its class.
Secondly, in terms of intelligence, it is better than other cars under RMB 100,000. Since 2019, with the promotion of domestic substitution wave, the price of intelligent driving assistance hardware has been continuously reduced, promoting the penetration of L2 level configuration into the low-price market segment.
In 2021, the 2021 NETA V Pro was launched, leading the trend of equipping the L2 level of auxiliary driving in the 50,000-100,000 RMB market.
Chen Yinbin said that in the early stage, the products under RMB 100,000 were mainly tools for commuting. With the continuous addition of intelligent functions and the diversification of product styling, cars have become more individualized, and NETA V carries more demands for individual expression.
In Chen Yinbin’s view, another reason why NETA V can grow so rapidly is that it has sensibly grasped consumers’ demands for individualization and launched sport and witch versions to test the waters.
Favored by young consumers and women
Who exactly is buying NETA V?
Chen Yinbin provided a consumer profile for NETA V.
Firstly, C-end users account for 97%, exceeding the industry average (C-end sales of new energy passenger cars accounted for 87.86% of total passenger car sales in 2021), and private users are the absolute main force.
Secondly, among consumers, women account for 60%. Although it is not a brand targeting women, the proportion of women is higher than that of models that specifically target females.
Thirdly, new second-tier city users account for 41%, and the penetration rate in major cities is not low.
Fourthly, it targets young consumers. Those born after 1990 and 2000 are the main car buyers, accounting for 40.5%.# NIO ES6 in China’s New Energy Vehicle Market
NIO ES6 has gained high recognition among consumers. In July 2022, J.D. Power released the “2022 China New Energy Vehicle Product Appeal Index Study Report”, in which the ES6 ranked first in the small pure electric vehicle market.
According to Chen Yinbin, this achievement is due to the ES6’s attention to detail. For example, most car steering wheels have a diameter between 385-395 millimeters, but the ES6’s steering wheel has a diameter of only 355 millimeters, which is 30 millimeters smaller and 9% more compact than conventional ones.
Chen Yinbin explained that a smaller steering wheel has several benefits for drivers: it can reduce driving fatigue to some extent, because the arm swing during driving is smaller; users can see the combination instrument outside the steering wheel, which is located at the bottom of the windshield, allowing for a wider view and faster information acquisition without the need to lower your head; a smaller steering wheel makes it easier to get in and out of the car and is more comfortable and labor-saving for female drivers, especially those with smaller hands.
Furthermore, the ES6 also has a witch version with a makeup mirror tailored for women.
Chen Yinbin hinted that in the fourth quarter of this year, NIO will launch a more trendy, cooler and more practical commercial model that meets the personalized needs of young people.
Currently, the ES6 right-hand drive model has been exported abroad and will officially land in the ASEAN new energy vehicle market. More overseas markets will be explored in the future.
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.