What is the first brand that comes to mind when you think of electric vehicles (EVs)? The obvious choice is Tesla. Tesla does not spend any money on this marketing strategy, to be clear. Tesla, on the other hand, was something you considered. Why? In the EV market, there is yet another brand that is making waves.
NIO is a Chinese company that designs and manufactures premium electric vehicles with high performance. It was founded by William Li in 2014, and it has since received funding from companies like Tencent and Baidu, propelling it to the forefront of China's domestic EV market. Through its autonomous driving solutions and premium EVs, the company's mission is to give users a sense of freedom and joy. We'll discuss how this Chinese company is outperforming its competitors in the EV market and how it manages its marketing strategies.
NIO’s Business Model in 7 Wonder Steps
It's difficult for a newcomer like NIO to compete against the might of established OEMs (Original Equipment Manufacturers). By emphasizing user experience and feedback in the development of product design and upgrades, Nio has been able to compete. Let's look at some of the other aspects of NIO's business model that have contributed to its success. By 2025, China's electric vehicle sales are expected to surpass 6 million units, and NIO could be a frontrunner in meeting that demand.
Robust R&D
To stay ahead of the curve in the rapidly evolving EV market, NIO focuses on innovation. It has filed around 300 patent applications in the last five years. Communication systems, security features, lighting, HVAC systems, distribution, and electric power conversion are just a few examples.
It makes patent licencing possible for the brand, resulting in innovator status and revenue. With three research centres in China and one each in the United States, Germany, and the United Kingdom, NIO aims to provide the market with technologically advanced premium EVs.
NIO Autonomous Driving
NIO's NAD is an autonomous driving system. The NIO ET7 sedan, which debuted in January 2021, is the brand's first autonomous driving model. NIO Aquila Super Sensing and NIO Adam Super Computing are used by NAD to make autonomous driving safe.
NIO Aquila is made up of 33 high
performance sensing unitsthat work together to generate 8GB of data
per second, including 8-MP high-resolution cameras, 1 ultralongrange highresolution LiDAR, 5 mm-wave radars, 12 ultrasonic sensors, and 2 high-precision positioning units.NIO Adam is a supercomputer that analyses all of this data to producehigh-resolution images with enhanced details for self-driving vehicles.
Baas (Battery as a Service)
The battery is at the heart of an electric vehicle, accounting for at least one-third of the vehicle's total cost. In April 2020, China issued a new regulation exempting "battery swap model" vehicles from the policy's "300,000 RMB price threshold for subsidy receipt."
A subscription-based or leasing service that aims to reduce consumer costs is known as BaaS. By not owning the battery, customers who use this service can save up to 100,000 Yuan. They can also lease the battery for around 1,280 Yuan per month for six years and then purchase it. It allows customers to address the three-pronged issue of battery degradation, upgradeability, and lower resale value.
Tags:
Battery Swapping, NIO’s Business Model, NIO Marketing Strategy, NIO Autonomous Driving
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