Written by Cláudio Afonso | LinkedIn | X
China’s electric vehicle (EV) manufacturer, Nio, reported a 7.2 percent year-over-year decline in revenue for the first quarter of this year, as announced in its financial results released on Thursday.
In the subsequent conference call, founder and CEO William Li revealed that the company is gearing up to enter the UAE market later this year.
“Regarding our entry into the Middle East market, we are preparing to offer our products and services in the UAE,” Li stated.
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In December, the company secured a $2.2 billion investment from CYVN Holdings, an Abu Dhabi-based investment vehicle. This deal increases CYVN’s ownership to 20.1 percent of Nio’s total issued and outstanding shares, following a $1 billion investment made last July.
“In July 2023, CYVN made a US$738.5 million strategic equity investment in the Company and acquired certain Class A ordinary shares of the Company from an affiliate of Tencent Holdings Ltd. for an aggregate consideration of US$350 million. Both transactions were closed in July 2023,” Nio stated last December.
“Now with the closing of the US$2.2 billion strategic equity investment, CYVN in aggregate beneficially owns approximately 20.1% of the Company’s total issued and outstanding shares,” the EV maker added by then.
When asked about the European Union anti-subsidy investigation towards China-made electric vehicles, Li said he is against the tariffs increase on energy products.
“Of course, we think this is a very wrong direction. Because of the sustainable development of the world, we think increasing tariffs on new energy-related products is against the goal of sustainable development of the world. It’s the opposite”.
The chief executive added that the company is prepared to adjust its strategy in the old continent depending on the decision made by the European leaders.
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“But from the perspective of an enterprise, we will adjust our direction and strategy according to their latest decisions. At present, NIO’s sales volume in Europe is relatively low compared to our overall sales volume. So it won’t have any impact on our company’s short-term operation,” he said.
“But in the long run, whether it’s Onvo or Firefly, we will make the most reasonable adjustment according to their next tariff adjustment. Thank you for the question. It’s true that the entire industry is waiting for the preliminary announcement on the anti-subsidy probe of Europe,” the CEO added before analyzing the short term impact that the measure could cause.
“Overall speaking, at the moment, the sales in our European market are still quite moderate in comparison to our total vehicle sales. So the impact on our short-term operations is limited. For the longer term, for Nio or for Onvo and Firefly products, we will also develop and make necessary adjustments to our strategies according to the latest tariff policy,” William Li concluded.
The company expects second-quarter vehicle deliveries to range between 54,000 and 56,000 units, anticipating 17,836 to 19,836 vehicles to be delivered in June.
Nio achieved its best monthly result ever in May, delivering 20,544 vehicles. This followed the delivery of 15,620 units in April, bringing the total to 36,154 units for the first two months of the second quarter.
The figures from the month of May represent a year on year increase of 233.8 percent as the EV maker delivered 6,155 a year ago. The last time the company delivered more than 20 thousand units was in July last year when it registered 20,462 vehicles sold.
Last week, Nio appointed Thijs Meijling as the new Head of European Business as part of a restructuring effort in its European organization, aiming to prepare for the next phase of expansion and the introduction of sub-brands.
In China, Nio registered 6,700 insurance registrations in China last week setting a new record. From May 27 to June 2, the Shanghai-headquartered manufacturer increased its weekly registrations by 24 percent from the 5,400 units registered in the previous week.
Written by Cláudio Afonso | LinkedIn | X
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