NIO President Qin Lihong Questions Excessive Pricing of Ultra-Luxury Cars in China, Citing Over 50% Taxes in Million-Dollar Price Tags

On the evening of May 16, during a media session following the launch event of the Onvo L80, Qin Lihong, co-founder and president of NIO, stated that most ultra-luxury vehicles currently priced above RMB 1 million in China are unreasonably overpriced. He pointed out that these models typically sell for around €50,000 in their home markets, such as Europe, yet cost as much as RMB 1 million in China—more than 50% of which consists of various taxes and duties, rather than merely what some call an "idiot tax." Qin highlighted two key shifts in today’s market: first, the rise of China’s domestic automotive industry, with improved local R&D and manufacturing efficiency leading to lower costs; and second, domestically produced vehicles avoiding the high import tariffs and shipping expenses associated with imported cars, thereby significantly reducing prices. As an example, he noted that some imported vehicles previously sold in China for RMB 1.5 million were priced at only €50,000 in Europe, and certain large MPVs even carried markups reaching three times their original price. While acknowledging past consumption trends shaped by specific historical circumstances, Qin emphasized that with ample supply now available, outdated pricing logic should no longer apply. He stressed that Chinese consumers work hard for their money and should not be expected to pay for unjustified premiums. Using NIO’s ET9 as an illustration, he remarked that if the car bore a different brand badge, its performance alone would not justify a high price tag. Qin also commended companies like BYD and Huawei for their efforts in the premium segment, noting that although this niche market is relatively small, it holds significant importance for shaping industry standards and definitions. NIO aims to use its “9 Series” products to steer demand in the premium vehicle segment toward a more rational and sustainable value orientation.