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Nio aims to double 2023 sales figures, hopes to be profitable by Q4

BusinessAutomotiveNio aims to double 2023 sales figures, hopes to be profitable by Q4

China’s leading electric carmaker Nio is anticipating a significant increase in sales for 2023, with expectations of doubling figures from the previous year. This optimistic projection was shared by Nio CEO William Li during the company’s financial results release for 2022.

Nio’s growth has been quite remarkable, with 122,486 electric vehicles delivered in 2022, representing a 34 percent increase compared to the previous year. Nio has established itself as the most competitive premium brand in China’s smart EV market, with the fourth quarter of 2022 seeing the company seize a 54.8 percent 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, according to data from the China Automotive Technology and Research Center.

With the expectation of doubling sales figures in 2023, Nio has set out an ambitious plan for the year. The CEO revealed that Nio will deliver five new models based on its second-generation platform this year, with four of them hitting the market in the first half, which the company believes will boost its sales from the third quarter.

However, the first quarter may prove to be challenging for the company, as its new models are not expected to arrive until the second quarter. Nevertheless, the CEO believes that Nio will no longer be in the red by the end of the fourth quarter.

To further improve the overall user experience and strengthen their competitive advantages in key areas of smart EVs, Nio has plans to build 1,000 battery-swapping stations this year, bringing the total figure to 2,300.

Although Nio’s sales have been robust, it is worth noting that all Chinese EV startups are currently in the red. In 2022, revenues from vehicle sales totaled 45.51 billion yuan for Nio, representing an increase of 37.2 percent from the previous year. However, the company’s net loss has soared to 14.44 billion yuan, compared to a net loss of 4.02 billion in 2021, primarily due to the surge in its cost of sales, expenses in research and development, and general and administrative expenses.

The CEO believes that the growing sales of their new models, coupled with the raw materials’ prices that are less likely to see significant fluctuations this year, will enable the startup to stop losing money by the fourth quarter.

Nio has also made inroads into the European market, entering it in 2021, with Norway being its first stop. In 2022, Nio expanded into four other European countries, including Germany and Sweden. However, Nio’s deliveries in Europe are expected to be lower than 10,000 units this year, as a result of “much lower infrastructure construction,” according to the CEO. He revealed that “so far, we have only 11 battery-swapping stations, much less than our planned figure.”

Overall, Nio’s ambitious plans for the year highlight the company’s confidence in its growth potential and its ability to continue to innovate in the smart EV market. With the new models set to hit the market and the increase in battery-swapping stations, Nio seems well-positioned to capitalize on the growing demand for electric vehicles.

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