NIO Executive Calls $1M Imported Luxury Cars Overpriced, Urges Value-Driven Premium Market

On the evening of May 16, during a media session following the launch event of the LeDao L80, Qin Lihong, Co-founder and President of NIO, stated that most ultra-luxury imported vehicles currently priced above RMB 1 million in the Chinese market suffer from unreasonable pricing. He explained that these models typically sell for around €50,000 in their home markets—such as Europe—but are priced at approximately RMB 1 million in China, with over 50% of the price attributable to various taxes and duties, rather than solely brand premium. Qin highlighted two pivotal shifts underway in the market: first, the rise of China’s domestic automotive industry, driven by improved R&D and manufacturing efficiency and reduced costs; and second, locally produced vehicles avoiding the high import tariffs and shipping expenses associated with imported cars, thereby significantly lowering their retail prices. As an example, he noted that some imported vehicles previously sold in China for RMB 1.5 million carry a European price tag of just €50,000, with certain large MPVs even marked up to triple their original price. While acknowledging historical consumer trends, Qin emphasized that today’s ample supply no longer justifies outdated pricing logic. He stressed that Chinese consumers’ hard-earned income should not be spent on unjustified premiums. Citing NIO’s ET9 as an illustration, he remarked that if the vehicle bore a different badge, its performance alone would not warrant such a high price. Furthermore, Qin expressed support for companies like BYD and Huawei entering the premium segment, noting that although this niche market is relatively small, it holds significant importance for shaping industry standards. NIO aims to use its “9 Series” products to steer high-end vehicle demand toward a more rational and normalized value orientation.