Nio Launches 'NIO Certified' Used Car Service in China Amid Competitive Pressure From Tesla

In line with its emphasis on service and support, Nio Inc – ADR NIO has announced the launch of a used care service in its home market of China.

What Happened: Nio officially launched on Sunday a pre-owned service called Nio Certified for buyers of used Nio cars. The company plans an investment of 3 billion yuan ($459.21 million) into this service over five years.

"The launch of NIO Certified marked the closure of the service loop throughout the life cycle of NIO cars," the company said in a statement.
The implementation comes after six months of trial operation, it added.

Nio noted that as of Dec. 31, 2020, it had delivered a cumulative 75,641 vehicles through the trial program, with the total mileage exceeding 1.4 billion kilometers.

How The Used Car Service Works: Nio said it has established a nationwide used car business network, providing a full-range of services including vehicle inspection, evaluation, acquisition and sales.

The company said it offers competitive rates and fast transactions. All pre-owned cars from NIO Certified have passed 286 tests designed for new energy vehicles and come with traceable vehicle information, the company said.

Related Link: Nio To Match Vehicle Prices Through Jan. 10 As China Plans 20% EV Subsidy Cut In 2021

NIO Certified allows buyers to return their cars or ask for replacement within seven days after purchase. The cars bought through the service come with other freebies such as an extended warranty from the manufacturer for one year or 30,000 kilometers from the date of purchase, a free 7 kW Power Home, lifetime free roadside rescue, lifetime free car connectivity and the same battery-as-a-service program that comes with a new car.

Nio also provides authentic part replacements in used cars, and updates their software and hardware before delivery. Battery swaps ensure the health of batteries available in the service network, the company said.
NIO Certified also offers benefits for repurchase, including NIO value point rewards, battery upgrades at a 40% discount, and discounts for Nio Pilot and autonomous driving packages.

Why It's Important: NIO Certified is seen as a move to accelerate the company's sales momentum, especially at a time when bigger rival Tesla Inc TSLA has begun to sell its China-made Model Y at a discounted price relative to imported models.

Nio reported for December 121% year-over-year increase in deliveries, topping off a year that saw the company rebounding strongly from a COVID-19-induced downturn in the first two months of the year.

Related Link: Why Nio Has A Shot At Becoming The 'Tesla Of China'

Photo courtesy of Nio.