Nio reports record deliveries for Q2 of 2024

Nio has balanced out the weak start to the year with a new delivery record in the second quarter of 2024. Turnover also reaches a high as a result. Nio expects even better results for the current quarter. However, the company is still not profitable.

Image: Nio

Between April and June, Nio delivered 57,373 vehicles worldwide and generated a turnover of 17.4 billion yuan (equivalent to around 2.21 billion euros) from these and other ancillary sources of income. This puts Nio’s weak start to the year into perspective, with only 30,053 deliveries and a turnover of 9.9 billion yuan (around 1.3 billion euros). With the Q2 result, Nio is back at the level of the second half of 2023, when quarterly deliveries had already exceeded the 50,000 unit mark twice. Specifically, the 57,373 vehicles delivered represent an increase of 91% compared to the aforementioned weak opening quarter of 2024 and 144% compared to Q2/2023.

Turnover is also up remarkably: the 17.4 billion yuan represents an increase of 76 per cent compared to Q1/2024 and 99 per cent compared to Q2/2023. However, Nio again posted a net loss of 5.0 billion yuan (around 630 million euros) between April and June. This is slightly less than in the first quarter (-2.7%) and around one billion less than a year ago (-16.7%).

William Li, founder, chairman and CEO of Nio, emphasizes that his company has secured “over 40% of the market share in the battery electric vehicle segment priced above RMB 300,000 in China” with its delivery record in the second quarter. The price limit corresponds to around 38,000 euros. Li believes that “Nio’s core competitive advantages in technology, product, service and community are increasingly recognized by users, resulting in continued strong sales performance.”

The company is in the red due to its ongoing high investments, which are not only being invested in production (Nio recently started building a third plant) or in the new subsidiary Onvo for more affordable electric cars, but also in improvements to existing products. In April 2024, for example, Nio launched the ET7 Executive Edition 2024, which offers 180 upgrades.

Meanwhile, Nio is expecting even better sales and turnover results for the current quarter. In July and August, the Chinese manufacturer delivered 20,498 and 20,176 vehicles respectively. More than 20,000 units are also expected to be sold in September, meaning that 61,000 to 63,000 units are forecast to be delivered in the quarter as a whole. This would correspond to an increase of around 10 to 13.7 per cent compared to the previous year. According to Nio estimates, turnover is expected to grow to between 19.1 and 19.7 billion yuan (roughly 2.5 billion euros) and thus reach the level of the previous year (+0.2 per cent to 3.2 per cent), when it had already reached such a high level.

The Nio annual report also highlights the fact that 105 shops of Nio’s new Onvo brand were opened at the same time on 1 September. The brand’s first model, the L60, is expected to be officially launched this month and will also be delivered immediately. “L60 has been widely embraced by the market since its debut and we expect the new brand to secure a strong position for us in the mass market,” said William Bin Li.

ir.nio.com

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