eastwest connect

NIO CEO Li Bin: Tesla’s price cuts prove that Chinese counterparts are doing well

According to news on April 3 by Huanqiu Wang Keji (Global Net Technology), Li Bin, the founder, chairman and CEO of NIO, recently mentioned at the China EV100 Forum (2023) that NIO will not participate in the price war.

Li Bin said, “Price war is definitely not the best way. We have to think about what value we create for users. It is hard to imagine getting the best products and services at the lowest price. This is not true in economic theory.”

He pointed out that those in the electric vehicle industry are facing many difficult choices. “Many of the peers’ cars are doing very well, and the cars of Chinese brands are doing very well. Therefore, I think Tesla’s price reduction is also a method adopted by Tesla in the face of such fierce competition from Chinese brands in the Chinese market. It is understandable that this just proves that excellent Chinese counterparts have done a particularly good job.”

In Li Bin’s view, compared with products from Chinese brands, the functional configuration of Tesla Model 3 and Model Y is relatively simple. “Actually, it can’t fight a price war, because its cost is there.”