On June 30, a Chinese online website reported that NIO’s vehicle sales in June had exceeded 4,000 units, afterward, the source d1ev.com tried to confirm with NIO’s co-founder and president Qin Lihong and NIO’s public relations department head Wang Yan, both parties denied it, Wang Yan said that the specific delivery data is mainly based on company announcements.
Nonetheless, a salesperson in the Beijing area told the d1ev.com, “Sales in June have generally risen, and ES8 sales have also begun to grow. Both Shanghai and Beijing have reached new highs.”
Overall, NIO’s sales in June are expected to reach 4,000 units, and ES8 will also regain growth.
First, the capacity of the Hefei plant supports sales of 4,000 units.
On May 28, NIO’s founder, chairman, and CEO Li Bin said at the first-quarter earnings report that NIO’s second-quarter sales will set a quarterly delivery record since the first delivery, reaching 9,500 to 10,000. According to the sales volume in May, NIO was able to achieve 10,000 units in the second quarter.
However, production capacity is the key to whether the current delivery data is beautiful. It is understood that the production capacity of the Hefei plant can reach 4,000 units per month in a single shift, but the limited production capacity of the supply chain is 3,400 and 3,500 units. This means that the production capacity of the Hefei factory cannot be kept up to the speed of NIO delivery due to the influence of the supply chain. Even if the monthly order quantity can reach 5,000 units, the production capacity does not support the delivery of 5,000 units per month.
However, since June, the prevention and control situation of COVID-19 has improved dramatically, the impact on the automotive supply chain has been greatly reduced. In June, NIO’s delivery volume could reach 4,000 units under the full load of the Hefei factory.
Moreover, NIO has begun to increase the full capacity of the Hefei plant and plans to increase the monthly capacity to 4500-5000 units. According to this capacity, as long as the order can keep up, NIO’s monthly delivery volume will easily exceed 4,000 units.
In addition, NIO ES8 will regain growth. The overall performance is remarkable after more than a month of delivery of the new NIO ES8,. In May, sales reached 751 units, a significant recovery compared to the previous period.
According to the insurance data released by the CATARC, the number of new NIO ES8 in May was 725, which was nearly two times higher than the previous month.
Since the delivery began in May 2018, in three years, NIO ES8 has experienced a stumbling block. The shadow of the recall has not disappeared so far. The ES8, which once maintained an average monthly sales of more than 1,000 units, is gone forever.
According to the official sales data released by NIO, the delivery of ES8 in 2018 was 11,348 units. At its most glorious time, the average monthly sales volume reached 2,660 units. However, since the recall was announced on June 27 last year, ES8 sales have fallen sharply. The total sales volume in the third quarter of 2019 was only 603 vehicles; seeing the recovery in the fourth quarter of last year, the sales volume in the fourth quarter reached 1400 units, double the growth from the previous quarter; But COVID-19 happened in 2020, there were only 195 units in the first quarter of this year, sales were less than one-eighteenth of ES6.
Finally, with the arrival of the new model, the sales of ES8 have once again picked up.
Li Bin preached on the earnings call in the first quarter, the current delivery ratio of ES6 and ES8 is 3:1. In other words, selling one ES8 can sell three ES6s at the same time. The data in May also shows that ES6 delivered 2685 units and ES8 delivered 751 units. According to this calculation, the delivery of ES6 in June will reach 3,000 units, and ES8 will be 1,000 units.