Nio ES8 Accident Rekindles Concerns Over Safety With Smart EVs In China

The death of a Chinese entrepreneur in a traffic accident while driving a Nio Inc. NIO ES8 sports utility vehicle has raised concerns about the safety of smart electric vehicles in China.

What Happened: Lin Wenqin, the founder of Chinese restaurant brand Meiyihao, died in a traffic accident in Fujian on August 12 while driving an NIO ES8 with the autopilot function NOP (Navigation on Pilot) turned on, China’s official securities media Securities Times reported.

Nio said the NOP was not an autopilot and more information will be released when findings are available, according to another report by cnEVpost.

This is the second major accident involving a Nio electric vehicle in China. An owner of an NIO EC6 was killed and the vehicle caught fire after hitting a stone pier in Shanghai in late July, the report noted.

See Also: Nio Confirms Plans To Enter Mass-Market EV Segment Under A Sub-Brand

Why It Matters: The two accidents have brought back the focus to the safety of smart electric vehicles in China.

The Securities Times report urged automakers in China to invest more in safety and less in advanced technology. It also called for strict regulation and supervision of electric vehicle makers.

Seen as a Tesla Inc. TSLA rival, Nio has positioned itself as a premium electric vehicle maker since being founded in 2014.

Nio currently sells three SUV models in China, namely the ES6, ES8 and EC6. The company’s new ET7 premium electric sedan, released earlier this year, will begin deliveries in the first quarter of next year.

NOP is one of the features of NIO's autonomous driving system, NIO Pilot. Nio said in June that the autonomous driving or AD system on the ET7 is deliberately "less aggressive" than rivals to prioritize safety.

Rival Tesla too has been drawing increasing attention over its vehicle safety in China.

Price Action: Nio shares closed almost 3.4% lower in Friday’s trading at $41.03.

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Photo: Courtesy of Jengtingchen via Wikimedia