NIO In April 2021: Fresh Sales Record, New Major Partnership

 

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  • China's NEV penetration rate rose to 11.4% in March.
  • NIO's share in China's NEV market reached 3.4%.
  • Notwithstanding, the Chinese premium EV market is entering a more competitive situation.
  • NIO is now building EV infrastructure with Sinopec.
  • This collaboration could strengthen the company's advantages on infrastructure, costs and services, attracting more customers.

Amidst the coronavirus pandemic last year, the global economy was severely compromised. However, China’s economic recovery is moving now at a lightning speed that overshadows other nations. Passenger vehicle and EV sales locally carried the leading positions in March 2021, presenting surges of 80% and 352%, respectively. In the same month, monthly EV sales first reached 11.3% of total car deliveries in the country. The rocketing EV sales mirror the overall strong consumption recovery.

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NIO broke its monthly record, delivering 7,257 vehicles in March. Meanwhile, NIO's EV market share was down to 3.4% mainly due to the booming sales of Wuling Mini, a product of SAIC Motor, Liuzhou Wuling Motors and General Motors' joint venture. 

In 1Q, NIO delivered 20,060 units, meeting the sales expectation of between 20,000 and 20,500 vehicles. On the other hand, the company's founder and CEO William Li claimed (link in Chinese) that due to the chip and battery shortage, the monthly production will remain at less than 7,500 units in the following months. He nevertheless believes that the supply chain issue will be eased in 3Q 2021.

Chinese EV market: A new crop

Notwithstanding NIO's strong delivery results, as mentioned in our last report, the EV market is expected to see more intense competition as different manufacturers are going to release new models in 2021. In April, a few brands launched similar products to NIO – and demonstrated them at the Shanghai International Automobile Industry Exhibition. It is not hard to tell that these brands are entering the premium EV market and eager to occupy a share. Below is a crop of the new vehicle models with competitive functions. 

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