On the evening of September 5th, NIO released its Q2 2024 financial report, which showed that in the second quarter of this year, NIO achieved a revenue of 17.45 billion yuan, a year-on-year increase of 98.9% and a month on month increase of 76.1%; The net loss was 5.046 billion yuan, a year-on-year decrease of 16.7% and a month on month decrease of 2.7%; Cash reserves of 41.6 billion yuan.
NIO Announcement
For the outlook of the third quarter of 2024, NIO has provided its strongest single quarter delivery and revenue guidance in history: the delivery guidance for the third quarter is 61000 to 63000 vehicles; The revenue guidance is between 19.11 billion yuan and 19.67 billion yuan.
Li Bin, founder, chairman, and CEO of NIO, stated during the Q2 2024 earnings conference call that "optimizing gross profit margin is an important task for us in the next stage while ensuring steady sales growth
Expected gross profit margin for vehicles in the fourth quarter to reach 15%
According to the financial report, NIO's car sales in the second quarter of 2024 were 15.6796 billion yuan, an increase of 118.2% compared to the second quarter of 2023 and an increase of 87.1% compared to the first quarter of 2024. The sales of automobiles have increased compared to the second quarter of 2023, mainly due to an increase in delivery volume, partially offset by a decrease in average selling price caused by changes in product portfolio and user equity adjustments since June 2023. NIO explained that the increase in automobile sales compared to the first quarter of 2024 is mainly due to an increase in delivery volume.
NIO Announcement
According to official data, NIO delivered approximately 57400 new cars in the second quarter of this year, a year-on-year increase of 143.9% and a month on month increase of 90.9%. Li Bin believes that the reasons for the high sales growth in the second quarter are mainly reflected in three aspects: firstly, the completion of the switch of 2024 products, which enhances the overall competitiveness of the products; The second is the BaaS strategy and price adjustment, which promotes users to accept the rental model. Currently, over 80% of new users choose the BaaS model; The third is the expansion of the sales network, which enhances sales capabilities.
NIO's gross profit margin for the second quarter of 2024 was 12.2%, an increase of 6 percentage points from 6.2% in the second quarter of 2023. The gross profit margin of the entire vehicle has increased compared to the second quarter of 2023, mainly due to a decrease in unit material costs, partially offset by a decrease in average selling prices due to user rights adjustments since June 2023. The gross profit margin of the entire vehicle has increased compared to the first quarter of 2024, mainly due to a decrease in unit material costs, "explained NIO.
Li Bin further explained that this is mainly due to the improvement of supply chain and production efficiency levels. NIO will continue to optimize product costs, increase the proportion of high gross profit models in the market, and improve the gross profit margin of the entire vehicle. It is expected that by the fourth quarter of this year, NIO's brand's gross profit margin of the entire vehicle can reach 15%, "Li Bin emphasized.
According to Li Bin, NIO's products will gradually switch to the third platform (i.e. NT3) starting from ET9. The company's goal in designing the NT3 platform is to achieve an average vehicle gross profit margin of over 20%, "said Li Bin. The company still maintains a monthly sales scale of 30000 vehicles, a vehicle gross profit margin of 20%, and NIO's core business in China, the NIO brand, which is profitable.
Ledao L60 pre order performance exceeded expectations
According to Li Bin, the first model of Ledao brand, L60, will be officially launched on September 19th and will begin delivery at the end of September. The pre order performance of the Ledao L60 exceeded expectations. Currently, there will be a ramp up process in the supply chain. We hope to achieve a delivery volume of 10000 units of Ledao L60 in December this year and 20000 units per month next year, "said Li Bin." The company is confident in the comprehensive competitiveness of Ledao L60 products and will make every effort to ensure the ramp up of production capacity and fully meet market demand
In addition to the Ledao L60, Ledao Motors will also launch a mid to large sized SUV in 2025. However, Li Bin stated that Ledao Automobile will not have too many products, but the company hopes that each product on sale can achieve a relatively high market share in the segmented market.
In addition, the first model of NIO's third brand Firefly (internal code name "Firefly") will also be delivered in the first half of 2025, sharing the sales network with NIO brand. The first Firefly car is positioned as a boutique small car in China, with a price not higher than BMW MINI, but the product is definitely better than it, "said Li Bin." We will have three brands covering the price range of 140000 to 800000 yuan, among which the target price range for using BaaS is 100000 to 700000 yuan, and the target market is wider than its competitors
Li Bin emphasized that NIO's three brand positioning is very clear, with NIO positioned in the high-end market, targeting both business and household users; Ledao Automobile targets mainstream household market users; Firefly is positioned as a premium small car, serving the needs of families for their second car. Starting from next year, we will have Ledao and a third brand, which will expand more actively in the global market, balance the company's efficiency, and ensure a positive impact on the company's finances, "said Li Bin.
It is reported that NIO is accelerating its global market layout. On August 20th, NIO's official website in the United Arab Emirates was launched, and the products will be officially launched and delivered in the fourth quarter of this year. In terms of global market layout, we will actively evaluate and explore opportunities for global market expansion while ensuring controllable investment and efficient operation, and introduce our products to more markets around the world, "said Li Bin.
In Li Bin's opinion, in the next few years, the market share of joint venture brand fuel vehicles will be given to new energy vehicles, and new energy vehicles will grow rapidly beyond expectations. Fuel vehicles in China have entered an accelerated decline cycle, and can only maintain market share by lowering prices. However, the decline in car prices will directly damage the profits of dealers, thereby damaging brands and the residual value of used cars, which will put fuel vehicles into a vicious cycle of rapid decline. "Li Bin believes that" some Japanese companies such as Honda, Toyota, Nissan, etc. may be repeating some of the problems encountered by Hyundai Kia and Ford in China a few years ago
