Nio assured of doubling profits this year

Nio is “very confident” of meeting its target of doubling profits to 250,000 electric powered autos this 12 months, Chief Economic Officer Steven Feng stated, prompting the Chinese automaker’s shares to surge in Hong Kong.

“We are very assured to accomplish our profits target in 2023,” Feng reported in an interview with Bloomberg Tv on Wednesday.

That will be achieved with new designs, increasing the company’s charging and battery-swapping network, and unlocking autonomous driving technologies, he reported.

Assembly the quarter-million income purpose will be a milestone for Nio, which delivered 122,486 autos in 2022. Even though that was up 34 % from a yr before, it skipped the company’s original focus on since product sales were hampered by China’s now-abolished COVID constraints.

Even so, it now faces intensifying competitiveness in China, exactly where a price tag war has broken out as domestic EV makers these as BYD and significant global automakers request to bolster revenue.

The price cuts clearly show the country has far too quite a few automakers, Feng stated. The discounting was sparked by Tesla, which to start with reduced charges in October, and then minimize much more deeply in January. Chinese automakers these types of as Nio and Xpeng adopted suit, as very well as important worldwide brand names like VW and Ford.

“We hope the market to go as a result of some profound consolidation,” Feng stated. “It’s just about consensus that China now has way too quite a few automakers, but we have no approach to obtain any person.”

The China Association of Vehicle Brands on Wednesday urged automakers and local governments to conclusion the selling price war, declaring it’s not a prolonged-term answer, and the automobile market place really should return to typical get as shortly as doable.

Nio earlier this month posted a wider-than-believed 5.8 billion yuan ($843 million) fourth-quarter loss as advertising and marketing and marketing expenditures climbed.

The automaker also documented an annual net reduction of 14.4 billion yuan on earnings of 49.3 billion yuan. Gross margins in the fourth quarter dropped to 3.9 per cent from 13.3 percent the a few months prior owing to a production platform switch and COVID disruptions.

Feng stated the business is “confident” about breaking even at the group degree upcoming year. “Strong profits development collectively with tightened paying out are the key to enhanced profitability,” he stated.

In spite of this week’s gains, Nio’s shares in Hong Kong and the U.S. have plunged additional than 50 per cent in the past 12 months.

Worth nearly double Ford when its sector worth peaked at pretty much $100 billion in early 2021, Nio is now valued at significantly less than a 3rd of the U.S. automaker.

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Chinese electric powered motor vehicle maker Nio would share battery swap tech to other automakers

Hui Zhang, controlling director of Nio in Europe, advised journalists at an occasion held in Norway last 7 days the business wasin talks with automakers without the need of naming them.

When requested to clarify regardless of whether sharing meant licensing or a further form of organization arrangement, the firm declined to offered addition facts.

Nio has so far crafted 868 swap stations in China and statements its buyers have swapped batteries 7.6 million occasions.

The enterprise has touted battery swapping as a exclusive offering position for the brand’s high quality SUVs and forthcoming sedan range and offering the battery swap platform would be the equal of Tesla’s latest conclusion to allow other brands to use its Supercharger community.

Battery swapping is significantly speedier than charging but the price to install the network is a great deal increased. A research printed last 12 months by The Swedish Transportation Administration wanting at battery swapping quoted Nio-sourced figures declaring every swap station costs $772,000 (699,000 euros) to create in China, like batteries and web site leasing, in comparison to $309,112 for a lender of cost points.

Nio claimed it is searching to decrease build fees for the swap stations, which presently have the capacity to store 13 batteries.

Licensing its platform to an additional automaker could increase the utilization amount of the swap stations, creating them extra value effective.

A single attainable purchaser is Geely-owned Lotus Know-how, the Chinese “life-style” division of the British athletics car maker, in which Nio has an financial commitment by using its enterprise funds arm.

Geely has its have designs to established up 5,000 battery swapping stations for electric powered autos globally by 2025. It has not said whether or not it would build its individual system.

The Chinese governing administration has been supporting the rollout of swap stations in the region. In a indicator of this, Beijing has specified Nio exemptions from a policy that dropped EV acquire incentives for quality-priced motor vehicles.

China’s Ministry of Market and Data Technology (MIIT) previous yr published the international auto industry’s initial benchmarks for battery swapping technologies aimed at encouraging broader adoption of the follow.

Approximately all consumers of the ES8 SUV that Nio released in Norway have opted to lease the battery separately, which provides entry to swapping stations, Nio stated.

Two free of charge swaps are included a thirty day period in the battery lease rate. Shoppers can opt to switch involving shelling out much more for the 100-kilowatt-hour battery or the less costly 75 kWh battery, which arrives later this 12 months.

Nio will grow into Sweden, the Netherlands and Germany afterwards this calendar year.

Nio’s start product in Germany will be the ET7 sedan, an electrical rival to the BMW 7 Sequence, which also comes with battery swapping technological know-how.

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