$NIO Inc(NIO.US) Although Xiaomi's marketing rhythm this time was well-executed, it cannot change the fact that it is an extended-range vehicle. The sales volume of a car in the automotive market is defined two or three years ago; it was a product launched when extended-range vehicles were at their peak, and upon launch, it encountered a period of shrinking extended-range market share. It cannot solve the inherent pain points that extended-range vehicles must face.

Essentially, it is competing with Li Auto and Aito, as well as the XPeng GX market. In the current new energy vehicle market, consumer mindsets have already stratified, with many staunch pure-electric advocates. No matter how strong its supply chain capabilities are, in the world of automotive industry, you get what you pay for; Leapmotor is a prime example. You should never expect a 300,000 RMB car to have the quality feel of a 400,000-500,000 RMB car; buyers of the latter know this clearly. Nio itself uses BaaS (Battery as a Service) to disrupt the next price tier while maintaining the intrinsic value of the vehicle body, which indeed feels like cheating. The 20 billion RMB invested in battery swapping has not been wasted.