Nio’s CEO, William Li, has disclosed that unfavourable public sentiment has considerably impacted gross sales of the corporate’s Onvo sub-brand, lowering potential gross sales quantity by 30-40%. This revelation got here throughout Nio’s earnings name on March twenty first, following the discharge of its fourth-quarter and full-year 2024 monetary outcomes.
Regardless of these challenges with its sub-brand, Nio has set an formidable goal to realize profitability by the fourth quarter of 2025, supported by aggressive cost-cutting measures and operational restructuring.
“Latest market competitors and unfavourable public opinion have adversely affected Onvo’s gross sales efficiency,” Li defined throughout the name. He attributed the gross sales shortfall to a number of elements, together with decrease model consciousness in comparison with opponents, strain on new orders after fulfilling current ones, inadequate gross sales expertise amongst workers, and preliminary battery provide constraints.
Nio is implementing branding, channel technique, and worker coaching enhancements to handle these points. The corporate is growing effectivity between Nio and Onvo by sharing sources in after-sales service, battery swapping infrastructure, and administration assist, though the gross sales networks will stay separate. Regardless of the challenges, Li famous that Onvo’s gross sales have surpassed Nio’s in 12 areas, suggesting the dual-brand technique nonetheless holds potential.
For 2024, Nio reported a record-high whole income of 65.732 billion yuans (9.1 billion USD), an 18.2% year-over-year improve. Nonetheless, the corporate’s web loss grew to 22.402 billion yuans for the yr, up 8.1% from 2023.
In its drive towards profitability, Nio has applied what it calls “aggressive value discount targets” throughout analysis and growth, provide chain optimization, and gross sales operations. The corporate has additionally launched a “Core Enterprise Unit” (CBU) working mechanism, dividing its enterprise into 12 core models to reinforce effectivity and enhance return on funding.
Margin enchancment is central to Nio’s profitability plan, with targets of 20% for the Nio model and 15% for Onvo by the top of 2025. The corporate achieved a ten% discount in car Invoice of Supplies prices in 2024 and expects its self-developed Shenji 9031 chip to scale back per-vehicle prices by 10,000 yuan(1,400 USD).
For Q1 2025, Nio anticipates delivering between 41,000 and 43,000 automobiles, representing a year-over-year improve of roughly 36.4% to 43.1%. The expanded 2025 product lineup consists of the flagship ET9 sedan, up to date variations of current fashions, Onvo’s second mannequin (L90), and the primary car from its global-focused Firefly model.
With these initiatives and a robust money reserve of roughly 42 billion yuan, Nio stays assured in its path to profitability regardless of the challenges going through its Onvo sub-brand.
