Chinese EVs Are So Good, Automakers Are Selling Experience' Instead

"China's market is crowded with many EV brands, many of them not turning a profit. Nio says that focusing on branding and customer experience is the way to stand out in a very crowded market. There are a lot of car brands in Chinatoo many of them. Despite the scale of China's car market and its level of innovation, a reset is bound to happen soon."

"Many of these car companies are either going to naturally fail, or combine, or probably be sunsetted at the behest of the state, but at least right now, it's not entirely clear which ones will be the ones to go. But as the number of auto brands inevitably declines, what determines exactly what consumers will get to choose at the end of the day? I brought this up with representatives from Nio, the tech-savvy Chinese carmaker famous for its battery-swapping technology, at CES 2026."

"Nio came to the show with the Nio ET9 Horizon Edition, its most expensive car ever, and showcased its Dolby Atmos sound system. There, Ted Li, the head of Nio product experience, said the company isn't worried when the chips start to fall. Photo by: Kevin Williams/InsideEVs Nio thinks focusing on brand is what separates the wheat from the chaff and how it'll weather an impending storm. And yeah, Dolby Atmos is kind of part of that."

"William [Li] started [Nio] having a vision, not as a car company, said Li, who is not related to Nio's founder. That's very important. The core and the starting point of this journey is actually marching toward an end point of holistic experience. He was referring both to the ET9 at the show and answering the question as to just how Nio sees itself remaining relevant in China, and, in turn, the world."

China's EV market is saturated with numerous brands, many operating without profit and facing an inevitable consolidation through failures, mergers, or state-driven closures. Consumer choice will narrow as weaker marques exit and remaining companies must differentiate. Nio emphasizes branding and a holistic customer experience, showcased by the ET9 Horizon Edition with premium features such as Dolby Atmos audio, battery‑swapping capability, and advanced predictive suspension. Nio positions itself as a lifestyle and experience company rather than solely an automaker, betting that superior brand experience will determine long-term relevance and survival in both China and global markets.

Read at insideevs.com