Electric vehicle manufacturer Nio faced a decline in its second-quarter performance for 2023, with a total delivery of 23,520 electric cars. This marks a 6.1% decrease compared to the same period last year, and a more significant drop of 24.2% from the preceding quarter. The company’s sales figures followed suit, reflecting the downward trend. However, prospects for a turnaround appear promising in the upcoming third quarter.
In the April-June period, Nio recorded sales amounting to approximately 8.8 billion yuan (1.1 billion euros), reflecting a 14.8% dip from the second quarter of 2022, and a notable 17.8% decrease from the preceding quarter in 2023. The company’s financial report revealed a net loss of about 6.1 billion yuan (770 million euros) during the second quarter of 2023. This figure represents a substantial 119.6% increase compared to the same quarter the previous year, and a further 27.8% rise from the first quarter of 2023.
The delivery aspect, while showing a downturn, is not without a glimmer of hope. Nio’s second-quarter deliveries of 23,520 vehicles marked a recent low in the past two years. To put this into perspective, the company had achieved 24,439 deliveries in Q3 2021, and set a record of 40,052 vehicles in Q4 2022. Yet, optimism persists with recent strategic shifts.
Nio embarked on transitioning its production to the NT 2.0 platform during the second quarter, launching the updated version of the ES6 electric SUV in China based on this platform. The results of these efforts were evident in July when Nio achieved a milestone by delivering 20,462 units in a single month. If this positive trend carries forward, the third quarter’s sales figures could significantly outperform previous expectations.
However, the trajectory of recovery from losses remains contingent on future investments. Nio’s CEO, William Li, emphasized the accelerated product cycle within the modern automotive industry, which stands at three to four years. This prompted the company to swiftly transition its initial models to the second-generation platform. While this strategy ensures up-to-date offerings in the market, it necessitates frequent investments in new developments and production facilities. As of June 30, 2023, Nio retained 31.5 billion yuan (approximately four billion euros) in its coffers.
William Li elaborated, “Attributed to the product transition based on the NT2.0 Platform, coupled with the expansion of our power network and the strengthening of our sales capabilities, we expect solid growth in vehicle deliveries in the second half of 2023.”
The outlook for the third quarter is notably optimistic. Nio projects deliveries to range between 55,000 and 57,000 units, poised to become the company’s most robust quarter to date. This projection fuels expectations of sales figures between 18.9 and 19.5 billion yuan (approximately 2.37 to 2.46 billion euros), potentially setting a new record for the company’s sales performance.
