- Li said Nio will focus on its core business, premium segment and core markets over the next 3 years, participating in embodied AI mainly through strategic investments.
- Nio will launch major new models in 2027, while Firefly has no plans for a second model.
Nio Inc (NYSE: NIO) founder, chairman and CEO William Li reiterated in an internal address that the company will focus on its core business, premium segment and core markets over the next 3 years, while teasing major new models for next year.
Li outlined growth priorities and product in an address to all employees on the afternoon of September 8, local media outlet Leiphone reported Wednesday.
The remarks come as competition intensifies in China’s auto market, with Nio seeking to build on recent operating improvements through premium models and greater efficiency.
“Over the next 3 years, our core task is to focus on our core business, the premium segment and core markets,” Li said, according to the remarks published by Leiphone.
He said China’s auto industry had entered “the most brutal stage of the final round.” Even as Nio continues to grow, competitive pressure across the industry will spill over to the company.
On products, Li said Nio would have major new models next year. The company has improved its launch cadence, moving away from introducing multiple products in quick succession, he said.
He did not disclose the models, their brands or launch dates in the address.
Li previously said on the September 1 second-quarter earnings call that sub-brand Onvo would launch a strategically important new product in 2027 to expand its lineup.
During the internal discussion, Li said the company had reviewed its second-generation product definition and planning, leading to clearer choices about target markets and segments.
For sub-brand Firefly, he said there were no plans to introduce a second model. The brand will continue updating its existing model and releasing limited editions.
As automakers rush into embodied AI, Li said Nio would likely participate mainly through strategic investments for an extended period, without making it a core business.
“There is still enormous room for growth in our core business,” he said. Nio holds just over 2% of China’s auto market and only about 4% to 5% of the mid-to-premium segment, according to Li.
That approach is consistent with previously disclosed plans. Nio said on its second-quarter earnings call that it would back Ren Shaoqing’s venture in physical AI as a strategic shareholder.
Ren will remain head of Nio’s smart driving division, responsible for its technology direction and long-term strategy.
Li also said in the address that the company would increase spending on incentives for key smart driving talent and on computing resources to maintain its technological competitiveness.
Beyond vehicle sales, Li sees the services and community business as an important part of a second growth driver, supported by an expanding base of vehicle owners.
The business generated revenue of 5.8 billion yuan ($856 million) in the first half of this year, after exceeding 10 billion yuan for the first time in 2025, he said. It has been profitable for several consecutive quarters.
Profit from the services and community business is sufficient to cover investment in charging and battery swap infrastructure, Li said. Energy operations, driver-assistance subscriptions and the Nio Life online store also form part of that growth opportunity.
Nio’s recent financial improvement supports its strategy, though the company has yet to achieve a net profit under GAAP.
Second-quarter revenue rose 69.1% year-on-year to 32.14 billion yuan, while vehicle margin stood at 18.5%, according to earnings released September 1.
The company posted adjusted profit from operations of 206.9 million yuan, its third consecutive positive quarter on that measure. However, its GAAP net loss was still 528 million yuan.
At a September 4 media briefing, Li said capital markets had yet to fully recognize the value of Nio’s AI (artificial intelligence) and energy businesses. The company ultimately needs to convince investors through operating results, he said.
Li said Nio’s market capitalization was once very high in 2021, but the company is now healthier than it was then.
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