Chinese automobile manufacturer NIO Incorporated has confirmed that it has decided to trim down the prices of its by more than $4,000 across the board to boost sales. The Shanghai-based electric carmaker said it would reduce the prices of all models by up to $4,200 (approx. 30,000 Yuan). While the manufacturer didn’t reveal the reason behind its decision, it is easy to understand that the company took the decision to boost sales. In the past few months of this year, the company has failed to report impressive sales figures. In fact, the company’s sales fell from the corresponding months of the previous year.

In the month of May this year, Nio delivered 6,155 EVs worldwide. This figure is down both from the month of April of this year and May of last year. On the other hand, Nio’s competitors like Tesla enjoyed an increase in sales in China, yielding a total of 77,695 units.

After suffering repeated declines in sales in the recent past, it was but natural for the Chinese company to restructure its pricing so that it could remain competitive as well as profitable in China – the world’s largest car market. On Monday, Nio stated that it would reduce the prices of its EVs (all models) by the aforementioned amount.

Apart from reducing pricing of its products, the Chinese manufacturer decided to put an end to its free battery-swapping service. In other words, the company started charging for its battery-swapping service. Interestingly, earlier this year, Nio Chief Executive Officer (CEO) William Li announced that the company wouldn’t engage in price wars to attract customers. Primarily, this was because of the company not having high adequate profit margins to vindicate price reductions.

Nio owns and operates more than 1,400 battery-swapping stations in China, and they have emerged as a hallmark of the brand over the past few years. Thus, the decision to discontinue free complimentary battery-swapping service might have shocked a lot of people. Now, the service will be available as pay-as-you-go or in the form of packages that are usually paid upfront.

The aforementioned price reduction has been announced by Nio right before the launch of the Nio ET5 Touring, a high-tech variant of the ET5 sedan. Capable of producing up to 482 horsepower (hp), the ET5 Touring will offer a unique of blend of performance and practicality. Customer deliveries of the ET5 Touring in Europe are slated for this summer.