Nio Forecasts Delivery Surge After Reporting First Quarterly Profit

Chinese electric vehicle (EV) maker Nio has forecast a surge of up to 97% in first-quarter deliveries. This projection underscores a turnaround after the company posted its first-ever quarterly profit. The growth defies a slowdown that has impacted most of its domestic rivals.

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Nio expects to deliver 80,000 to 83,000 vehicles in the first quarter of 2026, marking a year-on-year increase of between 90% and 97%. This growth projection goes against the trend seen by most Chinese peers in the first two months of 2026.

Halved purchase tax incentives weighed on sales during that period. China's largest EV maker, BYD, saw sales volume decrease 35.8% year-on-year. Leapmotor, the bestselling among smaller players, recorded a 19% rise over the same period.

William Li Bin, founder, chairman, and chief executive officer of Nio, stated that "our in-house core smart EV technologies continued to reach mass production and deployment, enhancing product competitiveness while delivering meaningful cost efficiencies." Deutsche Bank analyst Wang Bin noted that new promotions for Nio and Onvo brands in March, along with a significant reduction in customer waiting times, were also expected to help boost deliveries in March.

Nio projected revenue for the January quarter to be between 24.5 billion yuan (USD 3.6 billion) and 25.2 billion yuan. This represents an increase of between 103% and 109% from a year earlier.

The company achieved its first quarterly profit since its founding 11 years ago, in line with prior guidance. For the fourth quarter of 2025, Nio logged an adjusted profit of 726.8 million yuan.

This included an adjusted net profit from operations of 1.25 billion yuan, reversing losses from the previous quarter and a year earlier. This milestone places Nio among profitable EV makers such as BYD, Li Auto, Leapmotor, and IM Motors.

Despite quarterly profitability, Nio still posted a full-year adjusted net loss of 12 billion yuan for 2025. This deficit, however, narrowed by 39% from the prior year.

Vehicle deliveries in the fourth quarter reached 124,807 units, a sharp increase of nearly 72% year-on-year and 43.3% quarter-on-quarter. Quarterly revenue hit a record 34.65 billion yuan, soaring 76% from the previous year and 59% from the prior quarter.

Gross margins showed a broad recovery, with the comprehensive gross margin at 17.5% and vehicle margin at 18%. Both figures reached their highest levels since 2022.

For the full year 2025, deliveries totalled 326,028 units, up 47% year-on-year. Annual revenue reached 87.5 billion yuan, a 33% increase. Nio also highlighted its cash reserves, which surged to nearly 46 billion yuan. This increase of nearly 10 billion yuan significantly eases financial pressure and bolsters resilience.

Li affirmed Nio's commitment to "invest decisively in our 12 full-stack core technologies, launch new models, enhance the commercial and operational capabilities of our battery swapping and charging network, and continue upgrading our sales and service network."

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• Nio forecasts a 90% to 97% surge in first-quarter 2026 deliveries, projecting 80,000 to 83,000 vehicles.

• The company achieved its first quarterly profit in the fourth quarter of 2025, reporting an adjusted profit of 726.8 million yuan and an adjusted net profit from operations of 1.25 billion yuan.

• Nio's performance defies a broader slowdown in China's EV market, attributed to in-house smart EV technologies, new promotions, and reduced customer waiting times.

Source: SCMP