According to Sina Technology News on the afternoon of November 21,Wei LoeLi Bin, founder, chairman and CEO of Automobile, delivered a speech on the theme “Future Mobility and Changes in the Global Industry” at the 2019 China Automobile Industry Forum on the 20th, explaining why there have been few public appearances recently, saying that he is mainly busy selling cars, and talks about “some time ago, I was described as the worst person in 2019.”
Li Bin explained that currently NIO vehicles are distributed in 296 cities across the country. Basically, 90% of China's prefecture-level cities have NIO cars driving. “NIO users have proven with practical actions that we can buy and drive our cars.”
Referring to the decline in subsidies for new energy vehicles, Li Bin said, “After subsidies declined this year, sales of our electric vehicles were indeed under a lot of pressure. Basically, compared to the same period last year, there has been a lot of decline, especially for pure electric vehicles. The days are really not very good.”
However, judging from NIO's sales volume, NIO delivered 2,000 units in August and 2019 units in September, which is 20% more than what we expected. 2,526 units were delivered in October, and the estimated quantity for November was also slightly better than expected.
“Subsidies still put a lot of pressure on NEV sales in the short term,” but from Li Bin's personal point of view, he believes that new energy vehicles are already at a new inflection point. “In the past, it was true that policy-driven subsidies were in sales, and accounted for a large proportion of the promotion effect. After the decline in subsidies this year, we entered a new era. We really relied on products and services to win over users, and competed for users from gasoline car users with better products and services. At this point in time,”
With the passage of time, more and more companies are entering the electric vehicle market and jointly cultivating the overall market. Li Bin based on this judgment, “I don't think the spring of electric vehicles is particularly far away.”
He then listed some of the reasons. “The infrastructure has been greatly developed over the past few years,” Li Bin said. “The so-called range anxiety is mainly the hearts of gasoline car users who drive electric vehicles. It is actually fine to drive.”
In his view, the electric vehicle sales market is undergoing great changes. The demand for individual car purchases is getting stronger, there are more and more good products, and there are more and more rational users. “I believe that with this year's subsidy decline as a new starting point, the electric vehicle market will become healthier and more futuristic.” (Ze Yu)
The following is the full text of Li Bin's speech:
Hello everyone, in fact, there are few that have come out recently, mainly because they are busy selling cars, but some time ago, I was described as the worst person in 2019. I know that everyone is paying a lot of attention to NIO Auto. I know everyone is paying a lot of attention to NIO Auto, so let me share with you about NIO Auto's new developments.
Everyone labeled NIO Auto as a new car builder. Finally, speaking in numbers, NIO is also the company that delivered the most cars among the new car builders, was also the first to deliver cars, and currently has the most traffic.
Just now, the host said that my topic is a little bigger. Today, I'm going to be a little more specific and show you the new developments of NIO Auto. We delivered ES8 last year and ES6 this year. The average unit price is over 400,000, and the numbers are OK. Judging from other figures, our cars are distributed in 296 cities across the country, which is a little more than we thought. Everyone is always worried about whether I can buy an electric car or drive it. NIO users have proven with practical actions that we can buy and drive our cars. As an analogy, in 296 cities, basically 90% of China's prefecture-level cities, all have Chinese NIO cars driving.
Looking at the numbers a little bigger and seeing the global numbers, I was a little happy after reading this number. Looking at October, our ES6 became number one in the world in terms of sales of luxury pure electric SUVs worth more than 50,000 US dollars; we look at market segments. After all, we don't have enough models now. If we look at luxury electric SUVs, we have already surpassed them by a lot. It won first place in the world in October. This number makes me feel a little better.
There are also some very interesting figures. As of yesterday, NIO car owners have driven NIO cars for more than 380 million kilometers and have been able to travel many times to and from the Moon. This number also shows that our users drive this car, and the activity trajectory is very wide. Let's take a look at our NioPilot. Because NIO Auto is an intelligent electric car, our autonomous driving assistance is a very important function. During the National Day, the total mileage of the NioPilot used by car owners is 1.3 million kilometers. Our car's technology can actually help our users, and the driving experience in the car has become more convenient. These figures can give a good summary of the efforts made by NIO Auto.
Everyone is very concerned. What will happen after the current electric vehicle subsidies decline? Like everyone else, we experienced some pressure in July and August of this year, but if we look at some recent figures, we still see more confidence.
After subsidies declined this year, sales of our electric vehicles were indeed under a lot of pressure. Basically, compared to the same period last year, it has dropped a lot, especially for pure electric cars. The days are really not very good. Subsidies still put a lot of pressure on sales of new energy sources in the short term. But looking at the numbers behind it, there's no need to worry that much. As for NIO Auto itself, we delivered 2,000 units in August, 2019 units, 20% more than we anticipated, and 2,526 units in October. The better figure is that our quantity for November is better than our own expectations.
What is the final meaning? NIO Auto is for pure individual users. We sell it purely to 2C. There are only a few cars in operation. If you look at the 61,000 electric vehicles in September, the main decline is the number of cars in operation. If every car manufacturer does their own careful analysis, the volume of 2C and the volume sold to individual users is rising, the same as NIO's own ES6. This is an interesting trend we have seen. Although the total volume is declining, it is healthier. This is something I want to convey to you.
From my personal point of view, I think new energy vehicles are already at a new inflection point. In the past, indeed, policy-driven subsidies were in sales, which accounted for a large proportion of the promotion effect. After subsidies declined this year, they entered a new era. We actually won over users with products and services, and competed for users from gasoline vehicle users with better products and services, and reached this point in time.
NIO Auto's experiment is still worth paying attention to. We are also getting a lot of attention today. There are a lot of reports and news that don't match our situation. I don't think there's anything we can do about this; we have to endure this stuff. However, even under these circumstances, we can guarantee an increase in sales, which must indicate that the mentality of users has also begun to reach an inflection point. Many users very rationally see the advantages brought by electric vehicles, such as the low cost of use. The largest number of users now drive almost 100,000 kilometers, and can save 1 yuan per kilometer. He used to drive a relatively high-displacement SUV, and the fuel cost was relatively expensive, and he actually saved a lot of money. He saved 100,000 yuan a year. After years of cultivation, more and more individual users have realized the benefits of electric vehicles, and the benefits of smart electric vehicles have almost reached a new inflection point.
Now that more and more products and new products are being put into the market, I see that EQC is also being invested in the Chinese market.TeslaIt is also domestically produced. More and more electric vehicles from Chinese brands such as GAC, SAIC Motor, Geely, and BYD, and very good smart electric vehicle products are starting to enter the market. Everyone is educating this market. From this perspective, I don't think the spring of electric vehicles is particularly far away.
What is very significant about electric vehicles is that the infrastructure has evolved quite a bit over the past few years. On the NIO Auto app, our users can directly scan the code for fast charging piles, and can directly use 13 brands of fast charging piles for charging. There is basically no problem running at high speed. Are there any concerns about the so-called range? Yes, mainly gasoline car users are driven by the desire of electric vehicle users, and it is actually fine to drive. NIO's users have already driven more than 300 million kilometers, and our entire infrastructure is actually getting better and better.
Also, I believe that the media environment is getting better and better. In the past year, electric vehicles are responsible for traffic. Not only NIO, but other electric vehicles also have traffic. Why do they have traffic? After all, we have been in the media, and we still understand it. After all, 99% of users use gasoline cars. There are many people who praise electric cars if they say that electric cars are bad, and this matter will slowly change. Everyone will view the advantages and advantages of electric vehicles slowly and rationally.
When I talk about this data, I'm not saying that NIO Auto is doing very well; others are not doing well. I hope to recognize through the changes in NIO Auto's sales volume over the past two months that the electric vehicle sales market is changing greatly. The demand for individual car purchases is getting stronger, there are more and more good products, and there are more and more rational users. I believe that with this year's subsidy decline as a new starting point, the electric vehicle market will become healthier and more futuristic. Thank you all!