Benzinga | Dec 1, 2021 06:01AM EST

Nio To Waive Off Subsidy Amount To Buyers Who Book Vehicles Before Year-End

Nio Inc (NYSE:NIO) is waiving off the current subsidy amount to buyers who place orders this year but only receive deliveries in 2022, cnEVpost reported on Wednesday, citing a company update.

What Happened: The Shanghai, China-based Nio said customers who pay a deposit for the ES8, ES6 and EC6 before the end of this year and receive delivery by March 31, 2022, would get the subsidy at the Chinese national subsidy rate for 2021.

Individual customers who place orders for models with the 75-kWh standard range battery pack would still be eligible for a subsidy of RMB 16,200 ($2,545), while those opting for the 100-kWh long-range battery pack will receive a subsidy of RMB 18,000 ($2,826).

See Also: Nio Stages Bounceback As November Deliveries Rise 105% To Hit New Monthly Record

Why It Matters: China's state-led subsidy is expected to decline each year, by 10%, 20% and 30%, from 2020-2022, as announced earlier.

The subsidies are based on when the customers secure the license plate and not when they have placed the order.

Price Action: Nio shares closed 3.29% lower at $39.13 a share on Tuesday.

Photo: Courtesy of Nio