Recently, NIO announced its entry into the German, Netherlands , Denmark, and Swedish markets, because its innovative subscription model once caused heated discussion among netizens. It is understood that at the European press conference held by NIO last week, NIO said: It launched a "subscription model" in four European markets. Regarding why the subscription model should be launched in the European market, Li Bin said that vehicles will eventually become services, and in the final analysis, they are consumer goods. There are many things that users have to worry about before. NIO hopes to simplify the user service interface and turn the car into a service through various attempts. In addition, it is to help NIO enter the European market faster and increase the gross profit margin level of vehicles. In addition, the European market has a high acceptance of "use rights" and "subscription model".
The "subscription model" for the four European markets is mainly divided into two types: short-term subscription and long-term subscription, that is, users can choose models with different configurations and battery capacity according to their own needs to subscribe. The rental period is at least 1 month and up to 5 years. Short-term subscription users can cancel their monthly subscription at any time two weeks in advance and can change their subscription vehicles at will. As the vehicle age increases, the corresponding monthly subscription fee will also be reduced; the long-term subscription period is 12 to 60 months, and users will enjoy a low and fixed subscription fee. If the user does not terminate the subscription after the subscription expires, NIO will automatically renew it in accordance with the flexible subscription terms. The subscription price depends on the subscription method, model configuration, battery capacity, etc. In addition, the subscription prices of models with the same configuration in different markets are slightly different.
Take the German market as an example: The monthly subscription fees for short-term rental of 75-degree battery packs of NIO ET7, EL7, and ET5 in Germany are 1549, 1669 and 1249 euros (equivalent to RMB 10734, 11565 and 8655 yuan respectively); long-term monthly subscription fees are 1199, 1299 and 999 euros (equivalent to RMB 8308, 9000 and 6922 yuan respectively). For reference, the monthly rent of Tesla Model Y in Germany is about 600 euros, the monthly rent of Mercedes-Benz EQB is about 500 euros, while the monthly rent of Ford Electric Horse and Volkswagen ID is less than 500 euros. It is not difficult to see that NIO's rental price is relatively high, and it is even close to the Porsche Taycan.
In response to this, Li Bin also responded, "We are actually reasonable as the prices of Mercedes-Benz and Porsche . We need to return the product to the essence of the price. We are all inclusive, and others are just simple car prices, and many prices need to be calculated separately." It is understood that NIO's "subscription model" not only provides users with vehicles, but also provides full insurance, maintenance, winter tires, scooters, door-to-door pick-up and delivery services, and flexible battery upgrade services that will be provided in the future. At the same time, subscribers will become members of the NIO user community, participate in various user activities organized by NIO, use the NIO center, etc. In addition to the price of
, its innovative subscription model, also made many netizens believe that NIO adopts the strategy of "just rent but not sell". In response, Li Bin, chairman of NIO, responded: "At the press conference, I just said that I would provide this rental, and I didn't say that I would not sell it. This was actually done step by step, because it was indeed a bit troublesome if these models were done together in the early stage." In fact, for NIO, the subscription model first entered the European market, which also combined the local situation in Europe.
It is understood that most people in the European market are willing to use the vehicle because company car (employees only have the right to use) can enjoy more tax and fee discounts. A company car refers to a car purchased by a company or institution for employees to use in business or private life. The company's cars account for more than 50% of the sales of EU cars, which is an important part of the European automobile market. Li Bin also said: In most other countries in Europe, high-end company car subscriptions have become a tradition, and most consumers can easily understand and accept this. It stated: If the infrastructure or the entire fixed investment return in the early stage is not considered, but only the vehicle subscription model itself is considered, the gross profit margin of vehicles in the subscription model will be higher than that of selling cars."Vehicle rental pricing under the subscription model basically takes into account various factors, such as having reasonable gross profit margins and sustainable operations." At the same time, Li Bin also pointed out that NIO will not do the "loss and gain publicity".
Of course, all business logic comes from the market. Judging from the subscription model launched by NIO in the European market, if the subscription model in the European market can bring high market response to NIO, it is a successful attempt. After all, as Li Bin said: It is difficult to go from selling a car to subscription of a vehicle, but it is relatively easy to go from selling a vehicle. However, although the subscription model is consistent with the current consumption concept in the European market, according to NIO's plan, by the end of 2022, NIO plans to build 20 battery swap stations in Europe; by the end of 2023, this number is expected to reach 120. It will also carry out self-operated sales business in the European market, and the investment in these heavy assets and the high early acquisition costs of the brand will also bring challenges to NIO's operations in the European market.
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