Chinese EV maker Nio Inc NIO is reportedly offering a complimentary Nio Phone to customers purchasing its 2024 model electric vehicles.
What Happened: The promotion is valid only for the month of March, reported CnEVPost. The move follows the current trend in the Chinese EV market where manufacturers are trying to woo customers and drive sales with incentives amid increasing competition.
Nio, considered a rival to EV giant Tesla Inc, however, did not promote the offer on its official channels, the report noted.
Why It Matters: The Nio Phone, which was introduced in September 2023, is a smartphone designed for Nio vehicle owners. It offers over 30 car-specific functions and is priced at RMB 6,499 (about $904) for its base variant.
Nio's smartphone aims to entice customers with enhanced connectivity and services.
The launch of the Nio phone could strain the company's finances. Nio is still operating at a loss and facing shrinking gross margins due to the fierce competition in China's EV market.
Nio’s Financials: The EV maker delivered 160,038 vehicles last year, marking an increase of 30.7% from 2022. However, it has yet to make a profit.
Last year, the company reported a net loss of RMB 20,719.8 million ($2.88 billion), representing an increase of 43.5% from the net loss of RMB 14,437.1 million ($2.01 billion) it recorded in 2022.
For the first quarter of 2024, the company expects to deliver between 31,000 and 33,000 vehicles. Nio delivered 31,041 vehicles in the corresponding quarter of 2023.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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