SINGAPORE — As home carmakers in China strive to place themselves towards Tesla within the rising Chinese electric vehicle area, Nio is well-placed to capture a sizeable chunk of the market, an analyst advised CNBC.
The Chinese electric automobile start-up launched its first sedan, the et7, on Saturday with self-driving know-how options that it claims surpass that of Tesla. An et7 with a 70 kilowatt-per-hour battery pack begins at 448,000 yuan ($69,000) earlier than subsidy.
“This is the icon vehicle for Nio in the sedan category,” Bill Russo, founder and CEO at Automobility Limited, mentioned Monday on CNBC’s “Street Signs Asia.” He defined that the corporate has already established itself as a premium model within the SUV class the place it is promoting at a larger price than their peer group in China.
“Now they’re moving to the sedan segment, or the premium car segment,” Russo mentioned, including that the et7 will compete with Tesla’s imported Model S.
“Obviously, the pricing that was announced on Nio Day is actually quite competitive with the Model S,” he mentioned, including, “It’s a statement of aspiration, it’s a statement of where they hope to position their brand and among the Chinese companies, they are establishing that they are the premium (electric vehicle) company.”
Last 12 months, Reuters reported that Tesla minimize its Model S value in China by 3%.
China is already the world’s largest auto market. In its bid to develop into a chief in electric vehicle know-how, Beijing has supported the business with subsidies, looser restrictions and the constructing out of charging infrastructure.
Homegrown electric vehicle makers together with Nio, Li Auto and Xpeng mentioned deliveries surged final 12 months — authorities knowledge confirmed sale of pure electric automobiles from January by November jumped 4.4% on-year versus a 7.6% drop in total passenger automobile gross sales in the identical interval. Still, their supply numbers got here quick of Tesla’s.
“Clearly everybody’s trying to position against Tesla. Tesla is certainly the market leader. It has the market capitalization that’s so far ahead of everyone else,” Russo mentioned. For its half, Tesla’s market worth is round $768.93 billion as of Monday whereas Nio has a market capitalization of about $98.63 billion.
Employees make checks at an inspection line throughout a media tour of the Nio Inc. manufacturing facility in Hefei, Anhui province, China, on Friday, Dec. 4, 2020.
Qilai Shen | Bloomberg | Getty Images
Nio is “trying to establish themselves as the Chinese Tesla, which means you have to compare yourself as a premium EV brand in China with access to the China market, which stands to grow significantly over the next five years,” Russo mentioned.
“These companies are going to grow with the market and I think Nio’s positioned well to capture a lot of that,” he mentioned, including that, nonetheless, the corporate doesn’t management all of its provide chain and depends on third events for elements like autonomous driving chipsets.
For its half, Tesla has ramped up its efforts in China, together with extra promotions on New Year’s Day. The firm has a manufacturing facility within the nation that is succesful of producing 250,000 automobiles and has introduced a new China-made vehicle, Model Y, with a price ticket of 339,900 yuan.
— CNBC’s Evelyn Cheng contributed to this report.