In the second quarter of 2024, NIO delivered 57373 high-end intelligent electric vehicles, occupying over 40% of the market share in China's pure electric vehicle market worth over 300000 yuan, "said NIO Chairman and CEO Li Bin during the Q2 earnings conference held on the evening of September 5th.
At a time when the delivery volume reached a new high, NIO's revenue in the second quarter also showed a high-speed growth trend. Financial data shows that NIO's revenue in the second quarter was 17.45 billion yuan, a year-on-year increase of 98.9% and a month on month increase of 76.1%. At the same time, NIO's Q2 loss narrowed significantly by 16.7% year-on-year.
At the time of releasing its second quarter financial report, NIO's second brand, Ledao, also received attention from the outside world for its pre order performance. The reporter from China Business News learned from NIO that the first model of Ledao, L60, will be officially launched on September 19th, with pre orders exceeding expectations.
Since its launch, the L60 has been widely welcomed by the market, and we look forward to this new brand occupying a favorable position for us in the mass market. "Li Bin also stated that in the long run," with the release of new products and updates to existing products, NIO's monthly sales in China can reach 30000 to 40000 vehicles and achieve a gross profit margin of 25%.
Delivery volume increased by 143.9% year-on-year, setting a new high
After delivering over 20000 vehicles for four consecutive months, NIO's financial performance has further improved.
According to relevant data, NIO delivered a total of 57373 new cars in the second quarter, a year-on-year increase of 143.9% and a month on month increase of 90.9%, setting a new historical high. According to information provided by NIO, NIO has already occupied over 40% of the market share in the domestic pure electric vehicle market with a price of over 300000 yuan.
NIO's core competitive advantages in technology, products, services, and community have gradually penetrated people's hearts, driving sustained strong car sales performance. In July and August 2024, NIO delivered 20498 and 20176 cars respectively. Li Bin revealed that it is expected that the total delivery volume in the third quarter will reach a new high, further consolidating and expanding market share.
Under the record high delivery volume, NIO's financial performance in the second quarter also exceeded external expectations.
Financial data shows that in the second quarter, NIO's revenue was 17.45 billion yuan, a year-on-year increase of 98.9% and a month on month increase of 76.1%; The delivery volume was 57400 vehicles, a year-on-year increase of 143.9% and a month on month increase of 90.9%; The gross profit margin of the entire vehicle was 12.2%, an increase of 6 percentage points year-on-year and 3 percentage points month on month; R&D expenditure was 3.22 billion yuan, cash reserves were 41.6 billion yuan, and losses narrowed significantly by 16.7% year-on-year.
Thanks to continuous cost optimization, our vehicle gross profit margin increased to 12.2% in the second quarter. We will continue to focus on efficient research and development and investment in infrastructure, fully utilize the growth potential of the mass market, adopt flexible market strategies, and continuously optimize our product portfolio. We believe that these efforts will bring steady improvements in gross profit margin and cost-effectiveness in the future, "said NIO CFO Qu Yu.
It is worth noting that despite intensified competition in the automotive market, NIO still maintains a high level of investment intensity.
We will maintain a research and development investment of around 3 billion yuan per quarter, "NIO's management said during the earnings call on September 5th. It is reported that since 2016, NIO has invested a total of 50 billion yuan in research and development.
At NIO IN 2024 Innovation and Technology Day, which focuses on AI, we announced significant technological breakthroughs in multiple fields such as self-developed intelligent driving chips, vehicle wide operating systems, intelligent systems, and intelligent driving. Li Bin emphasized that through continuous and resolute investment in technology research and development, NIO has maintained a leading position in product and technological innovation, while achieving long-term cost competitiveness.
Multi brand strategy landing, Ledao L60 booking exceeds expectations
When announcing its second quarter financial report, NIO also released more information about its second brand, Ledao.
On May 15th of this year, NIO's new brand "ONVO Ledao Automobile" was officially released to the public. Ledao's first product, the family intelligent electric mid size SUV Ledao L60, has made its debut and started pre ordering, with a pre-sale price starting from 219900 yuan, fully benchmarking against Tesla Model Y.
From day one, what we thought most clearly was targeting family users, "said Ai Tiecheng, Senior Vice President of NIO and President of Ledao Automotive." In the global market, including China, in the mainstream price range, nearly 90% of consumers are family users
Four months after its release, Ledao will officially go public.
On September 5th, NIO's management revealed, "Our first model of the Ledao brand, the L60, targeting the mainstream home market, will be officially launched on September 19th and will begin delivery at the end of September. We are confident in the comprehensive competitiveness of the Ledao L60 product, and we will make every effort to ensure the ramp up of production capacity and fully meet market demand
The current pre order situation for the Ledao L60 is very good, exceeding expectations. There will be a ramp up in the supply chain, and we hope to achieve delivery of 10000 vehicles in December this year. We hope to reach 20000 vehicles per month at some point next year, "said NIO management.
The reporter noticed that NIO is full of expectations for Ledao's performance. The management of NIO believes that the market targeted by Ledao is a market of over 8 million vehicles, and combined with BaaS and charging and swapping networks, it is very competitive. In terms of sales, its upper limit is much higher. Ledao's medium and long-term business goal is a 15% gross profit margin for the entire vehicle
In terms of charging and swapping network construction, NIO plans to achieve nationwide charging connectivity in every county by June 30, 2025. The layout of NIO charging stations will be further improved and encrypted. In terms of battery swapping in every county, NIO will gradually promote it in three stages. Among them, by June 30, 2025, it will complete the battery swapping in 14 provincial-level administrative regions including Beijing and Shanghai, and over 1200 county-level administrative regions; By December 31, 2025, 13 provincial-level administrative regions including Hunan and Hebei will have completed the electrification of their counties.
With the gradual launch and iteration of multiple brand models, the basic technological capabilities and long-term strategic planning that we continue to build will gradually take effect. The accumulated R&D investment, refined community operations, and efficient infrastructure will bring steady increases in sales and gross profit, "NIO management said." We are confident in NIO's market performance in the second half of the year