Nio is preparing to launch a major new model in the fourth quarter as it pushes for profitability and expands its global footprint, CEO William Li said according to a report by LatePost.
“The Nio brand has a total of six new products this year, and we are very confident that we can return to the center of the stage and gain enough share in the markets we are in,” Li said.
The company plans to introduce nine new models across its brands—Nio, Onvo, and Firefly—this year. Among them, the highly anticipated fourth-quarter model is designed with competitive cost settings and will incorporate Nio’s latest technologies. While Li did not specify the model, industry speculation suggests it may be an updated ES7 SUV.
Expanding Battery Swap and Global Operations
In addition to product expansion, Nio is accelerating the rollout of its battery swap infrastructure. The company plans to add 1,800 to 2,000 battery swap stations in China this year, bringing the total beyond its current 3,189 stations.
“The construction funds for this year’s battery swap stations will be mainly from partners,” Li noted. “Others will build the stations, and we will rent them for use and operation.”
Internationally, Nio is targeting entry into 25 countries and regions this year. Li acknowledged past missteps in treating Norway as a benchmark for the broader European market and cited challenges with infrastructure development in Germany. Going forward, Nio will adopt a localized partnership model rather than a traditional dealership system.
Path to Profitability
Nio aims to achieve profitability in the fourth quarter, a goal that Li described as crucial for the company’s long-term viability.
“If profitability cannot be achieved as expected in the fourth quarter of this year, it will be a major test for Nio’s long-term development and business model,” he said.
The company is focusing on increasing sales while maintaining gross margins and controlling expenses. Li pointed out that in 2021, Nio was closest to profitability with a gross margin exceeding 20% despite selling only 90,000 vehicles.
The CEO emphasized that past investments in research and development—including chips, operating systems, and new vehicle models—will start yielding results this year.
“Why are we confident about profitability in the fourth quarter of this year? The core reason is that these investments will show results this year. Our management actions will also see results this year,” Li said.