The Government Just Gave NIO a Blank Check (ET5, Firefly, L60)

[00:00:00]Now, one thing that you will know about what is happening into China right now is that the Chinese government is still giving those people that are scrapping their old cars for new energy vehicle to a 5% of tax cut when they buy the the the that new energy vehicle like Nio, like Li Auto, like Xpeng, like of course Xiaomi. People are getting these subsidies and China has been giving these to people for for for for for for some time now, but this year after a long period of time they decided to cut down instead of people giving instead of them giving people a full 10% of tax of tax subsidy taken out of the car, they're now giving them just 50% or they're paying 50% of the tax of the car, which is something that has had an impact of course into some of the demand that people get when they're buying these cars. So, uh which is something that has affected the demand somewhere somehow, right?

[00:01:08]Something that is that is great it's something that you must take cognizance of and with our very own Nio regardless of this they've been maneuvering. Some automakers like Nio they started on some model I know Nio with the ES8 they were offering another 5% in-house meaning that look, you don't have to worry that the Chinese government won't give you 10% of subsidies uh but 5% the Nio Nio will still give you that or will add that other 5% that they're not giving anymore, which is something that has been making also the ES8 to to do so well because people are still getting as if like it's the 10% subsidies, which is something that is just so great. Someone might be asking why am I revisiting this story? Well, it's because today today today my dear friends we received wonderful news of saying that the Onvo L60, the Nio ET5, and Firefly have been chosen by China to be the cars that various Chinese provinces will be launching more subsidies over and above the current subsidies that are there.

[00:02:28]Each province will decide on the type on on how much subsidies they will add over and above these cars. Now, this is not being done everywhere, but China is implementing this onto rural areas.

[00:02:47]These uh some of the rural areas or the rural areas are going to receive cars like this to ensure that at least they access some of these cars. And of course there's a criteria that for a car to to be in this category, it must be selected. Like for instance, they uh don't look over cars that are they don't look at cars over 350,000 RMB.

[00:03:12]The reason ET5 touring uh came in onto this list was because it starts from around 298,000 RMB. The L60, you know, 198,000 RMB. Firefly, you know, 119,000 RMB. So, these cars they all qualify and they also can easily maneuver on the terrains in the rural areas and it is part it is the reason why they were also selected. Now, we are told that 155 cars were selected and for Nio these three were the ones on the list.

[00:03:49]And my dear friends, this is something that is just so great. Something that is exciting because we are going to get to see a demand onto these models in China because it means that people in those areas are designated selected areas are going to get more subsidies over and above uh the tech subsidies that other provinces are getting, which is something that is that is just so amazing. Now, apparently according to electric vehicle homes, the models, like I said, for 2026 new energy vehicle rural program uh or promotion program are the ET5, Touring, the ET, the the the Onvo L60, and Firefly.

[00:04:36]What is So, I've told you what this program is about, and we know that before the this new energy vehicle to rural areas program, there was a home appliance to rural areas program. The new energy vehicle to rural areas program is a government-sponsored support plan specifically for rural country-level population.

[00:05:02]All right. And uh NIO is on this list. This list includes models from ranging from 30,000 to 250 or above 250,000 RMB, and NIO was amongst the uh 155.

[00:05:22]This year, the inclusion of the high-end models from NIO, Xiaomi, Li Auto uh in the catalog is particularly noteworthy. NIO, like I said, there's Firefly, there's L60, there's the ET5, right?

[00:05:39]Um so, ET5 is likely the one that is mostly pricey looking at the price range for for for the catalog this year. Other models included Xiaomi SU7, LeOro L6 and i6, Tesla Model 3, SAIC GM GL8 Land Cruiser, right? These are some of the models. MPV, right? What And then uh uh when it comes to what types of vehicles are eligible, like I said, uh the recommended list for rural energy vehicles, generally there are some requirements for which is included on the list. In terms of price, the suggested retail price for the declared models should be, in principle, be below 350,000 RMB. Furthermore, considering specific circumstances for rural areas, I've spoken about the terrains, and countries, the vehicles cannot be cannot be in a niche or have low sales volumes, right? They need to be models that are more suitable for the characteristic of rural areas and countries. So, these vehicles will indeed enjoy some additional policy benefits compared to other regular vehicles. Besides the standard for scraping subsidies, trading subsidies, and purchase tax reductions, in each region will add its own rural special subsidy or consumption vouchers to new consumption voucher vouchers, etc. etc. And these are funded by the local governments, and the amount, eligibility criteria, quotas vary from province to province. Observing the new energy vehicle to rural areas over the years, it can be found that in the past, the models of the new energy vehicles to rural areas were generally microcomputer cars priced between 30,000 to 100,000 RMB. However, this year, the price range for the models to rural area is also consistently increasing. In 2026, large number of mid to high-end models priced between 200 to 300,000 RMB will be included in the 155 models catalog. So, in the past, it was 30 or it was vehicles between 30 to 100,000 RMB. Now, it's it's even up to 350,000 RMB, which is something that is very, very good. This also illustrates the overall improvement in the consumption level of rural and country residents in recent years. With consumption demand shifting from basic transportation to quality improvement. Data shows that in the 6 years since the new energy vehicle to countryside program was launched, sales of the new energy vehicles have increased from 397 units in 2020 to 9.43 million units in 2025, accumulating to over 20 million units. So, So, things are improving and this is something that is a very major catalyst for NIO knowing that ET5, Firefly, Onvo L60 were all are also selected. It is something that is just so great and it makes me to look forward. Look forward to what is coming.

[00:09:12]We have seen sneak peeks of some of the NIO users during the holidays going back to the rural areas with their NIO cars. And knowing that now, those in the rural areas that saw the NIO cars and were wondering if they can afford, well, the government is going to help you to be able to afford the NIO ET5, to be able to afford The only way L60, and to be able to afford the Firefly's sub brand, which is something that is so great, so amazing.

[00:09:42]Can you imagine how much Firefly is going to be with bus, with with a with tax subsidies and this special program subsidies that are to be added.

[00:09:55]It's going to be so cheap, man. And this is all thanks to the Chinese government that is making it possible for EV makers like Neo to benefit from this.

[00:10:06]And I look forward look forward to what is coming. Otherwise, it's all that I'll see you on the next one. That is all from me. Blue skies coming long term win that's all from me.

[00:10:14]Let's G the end.