Nio's CEO William Li announced that the company will prioritize its core business, premium segment, and core markets for the next three years. This strategy comes amid intensifying competition in the Chinese auto market, where Nio currently holds just over 2% of the overall market and 4% to 5% of the mid-to-premium segment.
The company plans to introduce major new models next year. Additionally, the sub-brand Onvo is expected to launch a strategically important new product in 2027. In contrast, the sub-brand Firefly will not introduce a second model, focusing instead on updating its existing model and releasing limited editions.
Regarding embodied AI, Nio intends to participate primarily through strategic investments for an extended period rather than making it a core business. The company has already backed Ren Shaoqing's physical AI venture as a strategic shareholder, while Ren continues to lead Nio's smart driving division.
To maintain technological competitiveness, Nio will increase spending on incentives for smart driving talent and computing resources. The CEO also highlighted the services and community business as a second growth driver, which generated ¥5.8 billion ($856 million) in the first half of this year.
The services and community business has been profitable for several consecutive quarters, with profits sufficient to cover investments in charging and battery swap infrastructure. Other growth opportunities include energy operations, driver-assistance subscriptions, and the Nio Life online store.
Financial results for the second quarter showed a 69.1% year-on-year revenue increase to ¥32.14 billion, with a vehicle margin of 18.5%. While the company posted an adjusted operating profit of ¥206.9 million, its GAAP net loss remained at ¥528 million.
