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    Xue Deng • CICC

    Xue Deng's questions to NIO Inc (NIO) leadership

    Xue Deng's questions to NIO Inc (NIO) leadership • Q3 2024

    Question

    Xue Deng from CICC asked about NIO's updated European market strategy in the face of accelerating competition and how the Firefly brand fits into its overseas plans. She also questioned the outlook for the gross margin of 'other sales'.

    Answer

    CEO Bin Li admitted that NIO brand performance in Europe has not met expectations, especially with tariffs making it price-competitive with Porsche. He explained the new strategy is to prioritize global expansion with the more mass-market ONVO and Firefly brands, which will lead the buildout of charging and swapping infrastructure in new markets. Regarding 'other sales', management noted that while aftersales efficiency is improving, accelerated infrastructure deployment for ONVO will create near-term margin pressure.

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    Xue Deng's questions to NIO Inc (NIO) leadership • Q3 2024

    Question

    Xue Deng from CICC inquired about NIO's current European market strategy, how it plans to differentiate itself, and whether the launch of Firefly will lead to more aggressive overseas expansion. She also asked about the drivers behind the narrowing gross loss from 'other sales' and its expected future trend.

    Answer

    CEO Bin Li acknowledged that the NIO brand's performance in Europe has not met expectations. He stated that future global expansion will prioritize the ONVO and Firefly brands. The global strategy will involve building the charging and swapping network around ONVO and Firefly, with the NIO brand leveraging that infrastructure. Regarding 'other sales,' the loss narrowed due to improved aftersales efficiency and a slower pace of Power Swap station deployment. However, losses may increase as infrastructure build-out accelerates for the ONVO brand.

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