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Charles Zhang, VP of Corporate Finance and Investments, explained the VW collaboration will create a third recurring revenue stream from EEA licensing once new ICE/PHEV models reach SOP. CEO He Xiaopeng added that L4-capable vehicles are planned for 2026 pilots, sharing a common source model with consumer cars but with different functionalities, and emphasized these vehicles would not require cloud takeover or hardware redundancy.

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President Brian Gu highlighted strong international growth focusing on Europe, the Middle East, and Southeast Asia, and noted the company is exploring ways to mitigate EU tariffs. CEO He Xiaopeng added that the Turing chip is progressing well, with mass production in some models expected in Q3. He emphasized its superior computing power and the company's goal of democratizing technology, implying benefits for consumers.

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Co-Founder, Chairman and CEO He Xiaopeng stated that a comprehensive full-stack capability including hardware and data loops creates a durable advantage that is difficult for competitors to replicate. He explained the Touring chip enables customization, better performance, and faster iteration. Regarding the humanoid robot, he noted its development is more challenging than AI cars, requiring L3-level AI to be useful, and confirmed progress is being made on motion and 'brain' capabilities.

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President Brian Gu stated that overseas sales are expected to maintain a similar contribution percentage (around 15%) next year, with both BEV and future extended-range models finding growth opportunities in global markets. VP Charles Zhang addressed capacity, confirming that both the Guangzhou and another plant are on double shifts, each capable of 200,000-300,000 units annually. He noted there is ample room for low-capital expansion and that supplier capacity is also being expanded in line with XPeng's platform-based strategy.

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Chairman, Co-Founder & CEO Jun Peng confirmed the company is on track to surpass its 1,000+ vehicle target by year-end, having already produced over 200 Gen 7 vehicles. He highlighted that the assembly lines for both BAIC and GAC models have reached the start of production (SOP) phase, supported by a secure component supply chain. Peng also emphasized the 70% reduction in bill of materials (BOM) cost for Gen 7 vehicles and improving unit economics through lower operational costs like insurance.

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Chairman and CEO Jun Peng confirmed the company is firmly on track to surpass its 1,000+ vehicle fleet target by year-end, having already produced over 200 Gen 7 vehicles. Peng highlighted the ramp-up in production efficiency, secured component supply, and a 70% reduction in bill of materials (BoM) cost, expressing confidence in achieving positive unit economics for the new fleet.

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Management detailed that the NWM has improved active safety and provides a better point-to-point smart driving experience, with the in-house chip version rolling out in late June. For the Envoy brand, they highlighted organizational adjustments and the plan to leverage the battery swap network as a sales channel. The L90 is set to launch in Q3, with a target for the Envoy brand to reach 25,000 monthly deliveries in Q4.

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CFO Stanley Qu acknowledged that EU tariffs have led to price increases and affected sales, but reiterated that NIO's European strategy is long-term, focusing on brand building and user satisfaction rather than short-term volume. For the ONVO brand, Qu stated that the initial gross margin is in the positive single digits. He guided for the ONVO vehicle margin to reach around 10% in 2025 as a baseline, with a target of 15% through cost improvements and new product introductions.

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CFO Stanley Qu acknowledged that EU tariffs have affected pricing and sales in Europe, leading to significant price increases. He emphasized that NIO's European strategy remains long-term, focusing on building its service network and brand awareness. For the ONVO brand, Qu stated that the initial vehicle margin is positive but in the single digits. For 2025, the company targets a baseline vehicle margin of around 10% for ONVO, with a goal of reaching 15% through cost improvements and an expanded product lineup.

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CEO William Li projected that China's NEV penetration rate, currently over 50%, could surpass 80% in the next 2-3 years, accelerated by the 'vicious cycle' of price cuts weakening traditional ICE brands. He also confirmed that products from the Firefly brand are on track for delivery starting in 2025 and that product preparation is proceeding smoothly.

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CEO An Cong Hui explained that the super electric hybrid technology is distinct from the Lynk & Co EM-P system and is designed for Zeekr's large luxury models. Its key advantages include consistent high performance regardless of battery charge, superior fuel efficiency, and ultrafast charging via a 900-volt system. He also noted lower maintenance costs as a key differentiator. The internal goal for this powertrain is to eventually contribute 150,000 to 200,000 units annually, and it will be featured in future models like the 9X and 8X.

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An executive, via an interpreter, explained that both brands will share a unified ADAS and infotainment platform to leverage economies of scale, though HMI design will differ. He clarified that Zeekr will use the super electric hybrid technology while Lynk & Co will stick to its EM-P platform, with no current plans to share the super hybrid tech. Investment in ICE vehicles will be limited to meeting existing demand, with a primary focus on new energy vehicles.

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