China's NIO Inc. has positioned itself as a manufacturer of premium-end vehicles, carving a niche for itself in this segment.
What Happened:Nio's founder, chairman and CEO William Li, reiterated the company's focus on the high-end of the market and provided some statistics to corroborate the claim, CnEVPost reported, citing a speech by Li at the 4th China Young Entrepreneurs Summit on Sunday.
Nio had delivered 102,803 vehicles over a three-year period ended April, and the average selling price of its vehicle is 434,700 yuan ($68,260), Li reportedly said.
This, the CEO pointed out, is higher than the ASPs of traditional luxury automakers such as Bayerische Motoren Werke Aktiengesellschaft and Volkswagen AG -owned Audi.
More importantly, Nio's ASP was about 100,000 yuan higher than that of Tesla, Inc., the report said, quoting Li.
Li also pointed out that the average age of Nio's customers is 37.2 years, signaling that the younger lot treat domestic brands on par with local brands.
Why It's Important:Nio has many times in the past sounded out comfort at staying at the high-end. The company has managed to keep its vehicle margin and overall margin on an upward trajectory, thanks to its higher-priced models.
The premium positioning has in no way impacted sales, as seen by the extended streak of double-digit year-over-year growth in deliveries.
That said, on a couple of occasions, the company has expressed intent to dip its heel in the mass market, albeit under a different brand name.
Nio shares closed Friday's session down 0.75% at $38.62.