NIO is optimistic about its sales in 2023, projecting figures to double from those of 2022. The firm aims to finish the year with a profitable balance sheet, according to NIO CEO William Li, who stated, “We aim to break even in the fourth quarter of 2023.” The Shanghai-based company delivered 122,486 electric vehicles in 2022, representing a YoY growth of 34 percent.
Li hopes to double the 2022 figure this year. However, the first quarter will be tough as new models will not arrive until the second quarter. Nonetheless, NIO has established itself as the most competitive premium brand in China’s smart EV market. In Q4 of 2022, it secured a 54.8 percent market share in the EV segment priced from 300,000 yuan ($43,437) and a 75.8 percent share in the segment priced over 400,000 yuan.
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Li added that NIO would deliver five new models based on its second-generation platform in 2023. Four of these models will hit the market in H1 2023, and the new models would enhance the company’s sales from Q3 onwards. Additionally, NIO aims to build 1,000 battery-swapping stations this year, bringing the total to 2,300.
Despite robust sales, all Chinese EV startups are still operating at a loss. In 2022, NIO’s revenues from vehicle sales reached 45.51 billion yuan, indicating a YoY increase of 37.2 percent. Nevertheless, NIO recorded a net loss of 14.44 billion yuan, which was higher than the 4.02 billion net loss incurred in 2021. This was due to the surge in the cost of sales, expenses in research and development, as well as general and administrative expenses.
Li is optimistic that the sales of new models, coupled with raw materials’ prices that are less likely to experience huge fluctuations this year, will enable the company to turn a profit by Q4. NIO also expanded into Europe in 2021, with Norway as its first stop, and added four more countries, including Germany and Sweden, in 2022. However, Li expects that NIO’s deliveries in Europe will be under 10,000 units this year due to the lower infrastructure construction compared to China.
