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HomeTechnology peripheralsIt IndustryNIO Li Bin: Our third brand is not a cheap car worth RMB 70,000 to RMB 80,000!

According to news on May 16, last night, the well-known electric vehicle manufacturer NIO officially announced its second brand-Ledo. This morning, Weilai's senior executives, including Chairman Li Bin, President Qin Lihong, and new Ledo Automobile President Ai Tiecheng, jointly accepted interviews with the media and elaborated on the company's future strategic plan. It is reported that Ledo Automobile will focus on the development of smart electric vehicle products with high technological content. Ai Tiecheng said that Ledo Automobile will be committed to promoting the development of smart car technology and creating a more intelligent, efficient and environmentally friendly travel mode. As a leading company in China’s new energy vehicle industry, NIO’s President Qin Lihong excitedly revealed in the interview that in addition to the newly released Ledo brand, NIO Lai also plans to launch a third brand in the near future, which is expected to be available to everyone within a year. He explained that the positioning of this new brand will be broader, both to meet the needs of more consumers and to meet the needs of more consumers.

According to the editor’s understanding, Chairman Li Bin made it clear that this upcoming third brand does not represent cheap cars, but pursues reasonable returns. For example, he said, this is similar to BMW's mini series or Mercedes-Benz's smart models. The price is relatively affordable, but it will never enter the low-price range, such as the market of 70,000 to 80,000 yuan. He stressed that even the Ledo L60, with a pre-sale price starting from 219,900 yuan, ensures a good gross profit margin, and the company will not make the decision to sell one at a loss.

NIO Li Bin: Our third brand is not a cheap car worth RMB 70,000 to RMB 80,000! Talking about the considerations behind Weilai’s multi-brand strategy, Li Bin explained that the scale of the high-end market has its limitations, accounting for only about 10% - 15% of the overall market. In order to achieve economies of scale, it is obviously not enough to rely solely on the high-end market. It is also necessary to enter the mass market. However, Weilai believes that it is unreasonable to cater to both high-end and mass markets under the same brand, because the price range that a single brand can cover is limited.

Therefore, NIO aims to cover a wider price range by launching Ledo and future third brands. These new brands will rely on NIO's existing tire repair network and supply chain resources to expand the market by adding delivery teams, thus increasing R&D and operating costs. This strategic move demonstrates NIO’s ambitions in the electric vehicle market and its firm belief in a multi-brand and multi-channel market strategy.

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