Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Nio, unveiled on Thursday ambitious plans for its upcoming NT3 platform during the Q1 2024 earnings call.
The new platform, in which the new flagship sedan Nio ET9 will be built in 2025, aims to achieve a significant milestone: an average of 20 percent vehicle margin.
William Li, Nio‘s Founder and CEO, emphasized the importance of this new platform in enhancing the company’s financial performance and competitiveness. “Starting from next year, we will gradually upgrade our product lineup to the NT3 platform, beginning with the ET9,” said Li. “For the third-generation product, we will incorporate more in-house technologies, such as custom-designed chips, to improve vehicle margins.”
The NT3 platform is expected to deliver substantial cost efficiencies. By leveraging in-house technologies and negotiating better terms with suppliers, Nio aims to reduce material costs significantly. Additionally, advancements in battery technology and cost reductions will play a crucial role in achieving the target margins.
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“With NT3, we are confident in achieving an average vehicle margin of around 20 percent,” Li added. This marks a notable increase compared to previous models and aligns with Nio‘s broader strategy to enhance profitability while maintaining its premium brand positioning.
The improved margins from the NT3 platform are expected to contribute significantly to NIO’s financial health, especially as the company targets a breakeven point for its core business. Nio has set a goal to achieve this by reaching a monthly sales volume of 30,000 units with the NT3 platform.
The company 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,” the chief executive stated.
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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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