EV maker Nio narrows loss on record deliveries, pledges more cost-cutting to compete in China’s cutthroat market

The Shanghai-based carmaker posted a third-quarter net loss of 4.56 billion yuan (US$639 million), 24.8 per cent narrower than the previous quarter

Revenue more than doubled quarter on quarter to 19.1 billion yuan as the company delivered 55,432 vehicles

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The Nio EP9 performance car on display at the Guangzhou Auto Show in Guangzhou, China, on November 17, 2023. Photo: Bloomberg

Published: 8:30pm, 5 Dec 2023

Chinese electric vehicle (EV) maker Nio reported on Tuesday that revenue growth from record vehicle deliveries led to a narrower loss in the third quarter, as it pledged to further reduce costs amid escalating competition in the mainland China market.

The Shanghai-based carmaker, which last month cut 10 per cent of its workforce, posted a net loss of 4.56 billion yuan (US$639 million) for the three months ending September 30, 24.8 per cent narrower than its 6.06 billion yuan loss in the previous quarter but 10.9 per cent wider than its 4.11 billion yuan loss in the same period a year ago.

Its per-share loss was valued at 2.53 yuan, beating a forecast of 2.97 yuan in a Bloomberg survey of analysts. Revenue increased 117.8 per cent quarter on quarter and 46.7 per cent year on year to 19.1 billion yuan.

“Our focus remains on advancing core technologies, developing key products, and expanding sales and service capabilities,” William Li, co-founder and CEO of Nio, said in a statement after the earnings announcement. “We are confident in Nio’s long-term competitiveness in the smart electric vehicle market.”

People check out a Nio ET5 in a showroom in Berlin, Germany, on August 17, 2023. Photo: Reuters

The company, which has yet to report a profit since its establishment in 2014, delivered a record 55,432 vehicles in the third quarter, 38.4 per cent above its previous high-water mark of 40,032 units in the fourth quarter of 2022.

It predicted its total deliveries in the fourth quarter would decline between 11.6 and 15.2 per cent to between 47,000 and 49,000 units, compared with the three months ending September. Fourth-quarter revenue could reach 16.7 billion yuan, the company predicted, which would be a 12.6 decline compared with the third quarter.