Image Source : China Visual

BEIJING, October 9 (TMTPOST) – NIO is going to offer its products and services to customers in Germany, the Netherlands, Denmark, and Sweden based on a subscription model, the company announced on Saturday.

According to NIO, there are short-term and long-term subscriptions. Short-term subscriptions, also known as flexible subscriptions, have a minimum term of one month, and the monthly subscription fee decreases gradually over time. Long-term subscriptions, also known as fixed subscriptions, ranging from 12 months to 60 months, have a fixed price and are less expensive than short-term subscriptions.

In the afternoon of Saturday, NIO Chairman Li Bin said in a media conference that the car itself would become a service in the long run. NIO has launched a "buy car, and rent battery" business in China, and now a subscription model has been released in Europe.

Norway is the first stop for NIO to enter Europe. Since entering the Norwegian market in 2021, NIO has adopted the model of selling whole cars in this region.

According to Li, auto markets are different in the four countries.

In these four countries, represented by Germany, providing the right to use cars accounts for nearly 60% of the high-end car market. "The subscription model for high-end cars is something that most people accept," Li said. Company car means that the company provides vehicles to staff, who pay a lower rent for the use of the car.

A person who worked in the German auto industry said Audi employees could spend as little as 300 euros (about $292) per month to use Audi cars. "In Audi, the company car monthly rent is one percent of the price of the car."

While the subscription model does not apply in Norway, where whole car sales dominate the car market.

At this stage, NIO is only applying the whole car sales model in Norway and will use a subscription-based model in other European countries.