Chinese electric vehicle manufacturer Nio Inc is “very confident” of doubling sales to 250,000, the Hong Kong-listed group’s chief financial officer said in an interview with Bloomberg.
Vehicle deliveries totalled 122,486 in 2022, representing an increase of 34.0% from 2021, per the group’s unaudited financial results published earlier this month.
But those sales came with tighter margins, leading to net losses of over US$2bn (£1.6bn) for the full year of 2022, representing an increase of 259% from the previous year.
However, Feng said the company is “confident” about breaking even at the group level in 2024, stating: “Strong revenue growth together with tightened spending are the key to improved profitability.”
Nio is also contending with an ongoing EV price war among the primary players in the Chinese market, which included Volkswagen and domestic manufacturer BYD.
“We expect the industry to go through some profound consolidation… It’s almost consensus that China now has too many automakers,” Feng said, though he denied having any intention to make a bid for any rivals.
Nio only has limited exposure outside of the Chinese market. Its range is only available to purchase in Norway, while limited corporate leasing options Germany, the Netherlands, Sweden and Denmark were announced in October 2022.
Nio’s ADR shares on the New York Stock Exchange closed Tuesday’s trading session 6% higher at US$9.27, with a further 2% added in Wednesday’s pre-market trades.