The company’s disappointing sales are compounded by significant reductions in state subsidies
A negative sales period for the Chinese electric car manufacturer Nio, which recorded a sharp decline in July sales with only 837 vehicles delivered to customers. The growing sales of its new ES6 SUV, in fact, have been offset by a sharp decline in those of the flagship ES8 model.
In addition to the security issues of the ES8 model, which scared consumers, the company’s disappointing sales are also compounded by significant reductions in state subsidies, which arrived on June 25th. Sales of NEVs in China fell 7% year-on-year to 8,000 units in July after significant growth of 80% in June, marking the first decline in over two years.
Nio will, therefore, struggle to reach its 50,000 unit sales target this year. It delivered a total of 8,379 ES8 and ES6 cars at the end of July.
Nio attributed the fall to a massive recall issued a month before the ES8
Nio sales fell by 37% in July. Sales of the ES6, which hit the market at the end of June, increased 63% last month to reach 673 units. The company struggled to move ES8 models this year after reaching the 3,318 record in December.
Nio attributed the fall to a massive call issued a month earlier after news of ES8 vehicles caught fire. It replaced the battery packs on almost 5,000 affected models.
William Li, founder and CEO of Nio, said: “During the month, we prioritized battery production capacity for this effort, which significantly influenced our production and delivery results. Furthermore, some deliveries were carried out in June in anticipation of further reductions in subsidies for electric vehicles that entered into force at the end of that month “.
The Chinese Association of Automobile Manufacturers expects a potential sales recovery
But the trend of Nio is not isolated. Even BYD, the largest producer of electric vehicles in China, recorded an 11.84% drop on NEV sales in July last year, marking the first decline this year, influenced by cuts in government subsidies and the overall economic slowdown.
The Chinese Association of Automobile Manufacturers expects a potential recovery of car sales for the next two months, as the traditional peak season will arrive in September and October.
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