Nio reports wider loss, forecasts sharp fall in deliveries as price war in China’s EV sector escalates
- The Shanghai-based carmaker expects to hand over 31,000 to 33,000 EVs between January and March, down 34.1 to 38.1 per cent from the fourth quarter of 2023
- Price competition to affect Nio’s sales in the coming months: Shanghai consultancy executive
The Shanghai-based carmaker expects to hand over 31,000 to 33,000 EVs to mainland Chinese customers between January and March, down 34.1 to 38.1 per cent from the fourth quarter of 2023.
Nio published its delivery guidance on Tuesday after it reported a net loss of 5.37 billion yuan (US$745.9 million), or 3.18 yuan per share, for last year’s fourth quarter. Its losses widened by 17.8 per cent from the previous quarter.
Nio’s performance was also worse than a forecasted loss of 2.98 billion yuan made by analysts surveyed by Bloomberg. Nio’s revenue climbed 10.3 per cent quarter on quarter to 17.1 billion yuan.
“Price competition is likely to affect Nio’s sales in the coming months,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “Its existing premium models are also victims of weak market sentiment, as drivers shift to cheaper EVs.”
Nio delivered 50,045 EVs to mainland customers in the three months ending December 31, beating a forecast of 47,000 to 49,000 units. The delivery volume represented a 9.7 per cent drop from the previous quarter.
