Nio Challenges Foreign Luxury Car Brands with New Electric Sedan
Nio challenges foreign luxury car brands with the launch of its new electric sedan, the ET9. The ET9 features advanced technology, including a high-energy-density battery pack and a fully active integrated hydraulic suspension system. Chinese EV makers are gaining market share in China, posing a threat to traditional petrol-powered luxury vehicles from foreign automakers.
The fully electric executive sedan is poised to rival BMW's 7 series and Audi's A8, marking a significant move in the Chinese EV market.
Nio's CEO, William Li, expressed confidence in the company's ability to disrupt the dominance of traditional petrol-powered luxury vehicles from foreign automakers. He stated, "I feel safe to say that foreign car brands will continue to lose their market share [in China],” he said at a briefing on Thursday. “They will be further marginalised in this market, where indigenous carmakers are showing an upper hand in developing and manufacturing electric cars."
Priced at 800,000 yuan (US$110,080) during the presale, the ET9 boasts cutting-edge features such as high-performance computing power and the world's first fully active integrated hydraulic suspension system. This innovative technology promises a smooth and comfortable ride, even on rough terrain.
The sedan will be equipped with a 120 kilowatt-hour (kWh) battery pack with an impressive energy density of 292kWh per kilogram, surpassing the average EV battery's 200kWh per kilogram. This higher energy density translates to an extended driving range for a battery of equivalent weight.
Nio plans to reveal the final retail prices for different ET9 variants later this month. The company aims to sell 1,000 units of the ET9 per month, a target that would align with deliveries by global automotive giants. This model represents Nio's most expensive development since its establishment in 2014.
In recent years, Chinese automakers have gained ground in the domestic market, with foreign brands now holding around 40% market share, down from 63% in 2015. The transition to electric vehicles has been a key factor in this shift, with EVs accounting for over half of new car sales in China each month since July.
Despite the growing competition from Chinese EV makers, foreign car manufacturers face potential profit losses of up to US$20 billion annually in China, according to UBS. However, these companies are expected to maintain their branding and production advantages in the premium segment, where affluent customers are willing to pay a premium for luxury cars powered by internal combustion engines.
As Nio leads the charge against international luxury carmakers with its new electric models, industry experts anticipate that other Chinese companies will follow suit by developing high-end models to attract buyers from brands like BMW and Mercedes. The performance and style of these new models will be crucial in convincing consumers to make the switch.
In 2021, premium cars, whether electric or petrol-powered, made up 13.6% of China's total car sales, with approximately 27% of these being battery-powered vehicles. The competition in the Chinese automotive market is intensifying, with both local and foreign manufacturers vying for a larger share of the rapidly evolving EV sector.
Nio challenges foreign luxury car brands with the launch of its new electric sedan, the ET9.
The ET9 features advanced technology, including a high-energy-density battery pack and a fully active integrated hydraulic suspension system.
Chinese EV makers are gaining market share in China, posing a threat to traditional petrol-powered luxury vehicles from foreign automakers.
Source: SCMP