Photo: @????? / Weibo
NIO has just started locking in orders for their new ET5 and that caused quite a buzz. Customers flocked into the company’s NIO Houses for a glimpse at the ET5 and to lock in their orders. Reactions to the new EV are comparable to the hype generated by Tesla’s Model 3 in China.
To help paint a clearer picture as to why that happened you need to know that Chinese people cannot just walk into a dealership and pick a car as we are used to. The process is far more convoluted. Due to this arduous and costly experience associated with car ownership in China, personal vehicles are somewhat of a status symbol.
Allow me to lay the barebones structure of that process. First come China’s taxes and fees associated with owning a car, which can add up to substantial amounts. Even if you have the money to get yourself a brand-new set of wheels, you cannot just go and do it, as you need a license plate first.
Those are limited depending on the city you live in. In cities like Shanghai, where NIO’s houses were filled to the brim with people, a license plate can end up costing you upwards of $14,000 for internal combustion vehicles. Even so, you can’t just go and outright buy one. You have to go through a secret bidding process and outspend your fellow citizens, or alternatively take part in a lottery program.
NIO stands as a bypass to that challenge. Being a Chinese EV manufacturer in a time when the government wants to increase vehicle ownership lends them a couple key advantages. One main appeal is getting your car sooner, as first deliveries are expected to start by the end of this month. Worth mentioning is that if you buy a NIO ET5, you can skip the entire hardship of getting a license plate, as there is no wait time or $14,000 tax involved. Price reductions offered by BaaS and the Chinese government are also quite substantial, making it a worthy proposition for the customer.
The final piece of this Black Friday looking puzzle is the social recognition of a membership to the NIO houses. This is compounded by the ET5's striking looks, luxurious interiors and dual-motor AWD powertrain, all making a statement about the owner's status in the Chinese society. With all these goodies in the NIO basket, you can understand how it managed to garner such attention from the public.
Allow me to lay the barebones structure of that process. First come China’s taxes and fees associated with owning a car, which can add up to substantial amounts. Even if you have the money to get yourself a brand-new set of wheels, you cannot just go and do it, as you need a license plate first.
Those are limited depending on the city you live in. In cities like Shanghai, where NIO’s houses were filled to the brim with people, a license plate can end up costing you upwards of $14,000 for internal combustion vehicles. Even so, you can’t just go and outright buy one. You have to go through a secret bidding process and outspend your fellow citizens, or alternatively take part in a lottery program.
NIO stands as a bypass to that challenge. Being a Chinese EV manufacturer in a time when the government wants to increase vehicle ownership lends them a couple key advantages. One main appeal is getting your car sooner, as first deliveries are expected to start by the end of this month. Worth mentioning is that if you buy a NIO ET5, you can skip the entire hardship of getting a license plate, as there is no wait time or $14,000 tax involved. Price reductions offered by BaaS and the Chinese government are also quite substantial, making it a worthy proposition for the customer.
The final piece of this Black Friday looking puzzle is the social recognition of a membership to the NIO houses. This is compounded by the ET5's striking looks, luxurious interiors and dual-motor AWD powertrain, all making a statement about the owner's status in the Chinese society. With all these goodies in the NIO basket, you can understand how it managed to garner such attention from the public.
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