Written by Cláudio Afonso | info@claudio-afonso.com
When asked about NIO ET7 orders numbers, NIO’s CEO said that they can’t discuss that although, he unveiled that the orders numbers are actually much more than those reported by media (15,000 units). “It is actually much more than the media report. For the ET7 market segment, we can see some other benchmarks. For example, the BMW 5 Series, Audi A6 and the Mercedes C-Class. ET7 has the similar pricing as the target group which sells the product as well, especially regarding the BMW 5 Series.” — William Li stated.
Bin Wang (Credit Suisse)
I actually have got a question about the ET7 service because recently there was a media call. First one, EV they say that ET7 received very good order flow, about 15,000 order backlog, which indicate monthly volume could be around 5K. What’s your comment about this?
Second thing is about the margin, because we’ve seen in the fourth quarter last year that service actually had very big negative cost margin, more than 30%. What’s the reason behind that and what’s the outlook of this fixed margin going forward? Meanwhile, you just provided 18% to 20% margin guidance. Is this just the vehicle gross margin or actually including the service margin already? Thank you.
William Li
Regarding the first question of the ET7, of course we cannot discuss the specific order number at this moment. But what I can say is that it is actually much more than the media report. For the ET7 market segment, we can see some other benchmarks. For example, the BMW 5 Series, Audi A6 and the Mercedes C-Class. ET7 has the similar pricing as the target group which sells the product as well, especially regarding the BMW 5 Series.
So, for BMW 5 Series we can see that the monthly delivery number is around 12,000 to 15,000. Of course, for the ET product it will need some time for the users to adopt and accept but if we look at the examples of the Shanghai market, right now in the premium SUV segment in Shanghai, our market share is around 23%.
So, if we also mirror this to the sedan market, we believe there is a lot of room for growth and also potential for our ET7. So, at this moment we cannot see how much we’re going to deliver every month, but according to the user feedback we receive right now, we’re very confident with the ET7s performance in the future.
William Li added hat the company expects to deliver a total of 25,000 to 26,000 vehicles in the first quarter of 2022. In January, NIO delivered 9,652 units and another 6,131 in February reaching a total of 15,783 vehicles. Based on the calculations, the company will deliver between 9,217 and 10,217 in March. NIO reported its Earnings Results on Wednesday. The company had a total Revenue of $1.55B in Q4 2021 (an increase of 52.0% Year-over-Year) beating Wall Street expectations by $20M.
“We concluded the year of 2021 on a strong note with an annual delivery of 91,429 vehicles in total, representing an increase of 109.1% year-over-year, despite all the challenges including the supply chain volatilities in particular. In light of the seasonality and the Chinese New Year holiday, NIO delivered 9,652 vehicles in January and 6,131 vehicles in February, representing a growth of 34% and 10% year-over-year, respectively. We expect to deliver a total of 25,000 to 26,000 vehicles in the first quarter of 2022,” said William Bin Li.
On Wednesday, the company announced that the first batch of NIO ET7 production vehicles was officially rolled off the production line at Hefei. “The car that everyone has been waiting for for a long time is coming soon” — NIO said. On March 18, our site revealed the photos of the first ET7 rolling off production being expected to have a 6 months delivery time, according to our local source. NIO started ET7 test drives on March 5th and will deliver the first units on March 28th.
On March 23, NIO’s Europe Vice-President was among the keynote speakers at the SMMT Electrified 2022 conference held in London, United Kingdom. Hui Zhang, that works for NIO since January 2016, enhanced the advantages of the Battery-as-a-Service.
According to a video posted on TikTok, NIO has thousands of models parked at NIO’s Hefei Factory, in China. The company has been keeping the secrets indoors without unveiling pre-orders numbers, test-drives scheduled, or other relevant numbers and JAC x NIO Factory is not an exception. The EV manufacturer will launch its new five-seater SUV in mid-April and will show it to the public at the 2022 Beijing Auto Show. The international automotive exhibition will take place at the China International Exhibition Center of Beijing from April 21st to April 30th.
Written by Cláudio Afonso | info@claudio-afonso.com