Chinese electric car manufacturer, Nio, has released its balance sheet for the first quarter of 2023, revealing both positive and negative trends. Despite delivering 31,041 vehicles between January and March, which marks a 20.5% increase compared to the same period in 2022, Nio experienced a decline of 22.5% in vehicle deliveries compared to the previous quarter, Q4 2022. In terms of revenue, the company generated just under 10.7 billion yuan ($1.6 billion) in the first quarter, indicating a 7.7% growth from Q1 2022, but a 33.5% decrease from Q4 2022. Nio reported a net loss of approximately 4.7 billion yuan (610 million euros) during the first three months of the year. This loss represents a significant increase of 165.9% from the same quarter in 2022, but a decrease of 18.1% from Q4 2022.
Despite these financial challenges, William Bin Li, the founder, chairman, and CEO of Nio, emphasized that the company has maintained its position as the leading manufacturer of premium battery electric vehicles priced above RMB 400,000 in China for 12 consecutive quarters. However, Nio’s overall profitability remains a concern. In 2022, the company delivered 34% more vehicles than the previous year, with sales increasing by 36% to reach 49.3 billion yuan (€6.7 billion). Unfortunately, this growth was accompanied by a net loss of 14.4 billion yuan (€1.96 billion) for the year, representing a substantial increase of nearly 260% compared to 2021. While the fourth quarter of 2022 showed promise with 40,052 vehicles delivered, the results for Q1 2023 indicate that Nio is struggling to sustain this level of performance.
The first two months of the second quarter have also been challenging for Nio. In April, the company only delivered 6,658 vehicles, followed by 6,155 vehicles in May. These lower figures can be attributed to the production halt of certain models undergoing conversion from the NT1.0 to the NT2.0 platform. Consequently, Nio missed out on the resurgence of the electric car market in China that occurred in May.
In an effort to regain momentum, Nio has announced the launch of new models on June 15. These include the estate version of the ET5 and the EL6. Additionally, the company has reduced the base prices of all its models in China by 30,000 yuan (approximately €4,000). For instance, the entry price for the ET5 sedan, Nio’s most affordable model, has been reduced to 298,000 yuan (around €38,800) or 228,000 yuan (about €31,000) if the battery is rented. However, Nio will no longer provide its battery replacement service free of charge.
The upcoming releases and price adjustments are part of Nio’s strategy to navigate the competitive electric vehicle market in China. The company aims to attract more customers and improve its financial performance in the near future.
