NIO's Sales Record High
NIO achieved record-breaking sales in May, delivering 20.544 new cars, representing a year-on-year increase of 233.8% and a month-on-month increase of 31.5%. In the current market trend, where plug-in hybrids are rapidly growing and the growth rate of pure electric vehicles is slowing down, coupled with the launch of new cars at the Beijing Auto Show, it is remarkable that NIO managed to achieve such results.
Focus on the Chinese Market
Mainstream electric vehicle brands have recently seen significant sales growth in the Chinese market. According to the latest delivery data released by NIO on June 1. NIO delivered 20.544 new cars in May, achieving a year-on-year increase of 233.8% and a month-on-month increase of 31.5%, setting a historical record. From January to May this year, NIO delivered 66.217 new cars, a year-on-year increase of 51%. To date, NIO has become the first high-end pure electric brand in the industry to exceed 500.000 deliveries.
Strategic Adjustments
In March of this year, NIO reduced the service fees for batteries, which undoubtedly further lowered the car purchase cost for consumers and improved the cost-performance ratio of its products. Following this, in April, NIO launched a car purchase option subsidy of up to 1 billion yuan, which not only further stimulated consumer purchasing enthusiasm but also enhanced the appeal of the NIO brand. The implementation of these measures led to rapid growth in sales and laid a solid foundation for NIO's future market layout.
Competitor Performance
In May, Li Auto delivered 35.020 new cars, a year-on-year increase of 23.8% and a month-on-month increase of 35.8%, successfully returning to the top three. Among them, the Li L6. which began delivery on April 24. delivered over 15.000 units, setting the fastest delivery record for a new model of Li Auto. Li Xiang, Chairman and CEO of Li Auto, stated that the company is fully optimizing the supply chain of the Li L6 and accelerating production to deliver the vehicle to users as soon as possible. At the same time, driven by the new product price system, the sales momentum of the 2024 models Li L7. L8. and L9 is also steadily increasing.
Sales Incentives
The commission for sales consultants has increased from 800 yuan per car to 2.000 yuan per car, with the commission for inventory and showroom cars directly increased to 4.000 yuan per car. The increase in commission per car directly stimulates the motivation of front-line sales personnel. News reports suggest that some NIO sales consultants have monthly bonuses of 100.000 yuan. Although this may be an exaggeration, it is not difficult for front-line sales personnel to earn tens of thousands of yuan per month as sales increase in the short term.
Future Outlook
Clearly, NIO's sales exceeding 20.000 units per month is no longer a flash in the pan. In the crucial next six months, NIO must withstand the pressure and maintain monthly sales of over 20.000 units, even if it means exhausting all price reduction strategies. Achieving explosive success and profitability, similar to Li Auto, is within reach.
