Chinese electric vehicle maker NIO achieved record car deliveries and double-digit revenue growth in Q4 of 2024, with continued improvement in gross margin.
NIO’s revenue reached RMB 19.703 billion ($2.699 billion) in Q4 of 2024, an increase of 15.2% year-on-year, and of this, vehicle sales reached RMB 17.476 billion, up 13.2%. For the full-year of 2024, NIO’s revenue reached RMB 65.732 billion ($9.005 billion), a 18.2% increase.
In Q4, NIO delivered 72,689 vehicles, marking a record high, surging 45.2% year-on-year and up 17.5% quarter-on-quarter. Among these, the ONVO brand contributed 19,929 units, accounting for nearly 28%. Full-year deliveries reached 221,970 vehicles, up 38.7% from the previous year.
In Q4, the overall gross margin was 11.7%, up 420 basis points year-on- year and vehicle gross margin continued to improve, increasing by 120 basis points to 13.1%.
NIO reported a net loss of RMB 7.112 billion in Q4, widening 32.5% year-on-year and expanding 40.6% quarter-on-quarter. Full-year net loss was RMB 22.402 billion, widening by 8.1% from a year earlier.
By the end of 2024, cash, cash equivalents, restricted cash, short-term investments, and long-term deposits totaled RMB 41.9 billion.
In Q4, R&D investment was RMB 3.64 billion, and total R&D spending for the year was RMB 13.037 billion.
For Q1 2025, NIO’s delivery guidance is 41,000 to 43,000 vehicles, a year-on-year growth of 36.4%-43.1%. Total revenue is expected to be RMB 12.367-12.859 billion, a year-on-year increase of 24.8%-29.8%.
Surging Sales but Pressure on Average Selling Price
NIO’s Q4 delivery reached 72,689 vehicles, marking a 45.2% year-on-year growth and 17.5% quarter-on-quarter increase, marking a new record.
However, despite the significant increase in deliveries, vehicle sales revenue grew by only 13.2%, indicating that the average selling price of NIO’s vehicles has decreased due to changes in the product mix, especially after the ONVO brand started mass production.
Significant Gross Margin Improvement, Cost Control Shows Early Results
NIO’s Q4 gross margin was the highlight of the financial report. Its vehicle gross margin remained steady at 13.1%, the same as in Q3 but up 120 basis points from the same period in 2023. The overall gross margin reached 11.7%, up 100 basis points QoQ and up 420 basis points year-on-year, setting a recent high.
The achievement is especially impressive given that the ONVO L60, a new product, was still in the early stages of production. The margin improvement can be attributed to three factors: reduced per-unit material costs, increased proportion of high-margin tech services and after-sales business, and reduced loss ratio of charging solutions. This indicates NIO’s positive progress in product cost control and business structure optimization.
CEO William Li noted that “the continued growth in after-sales services and profitability, along with the growth in tech services, drove positive quarterly margins from other sales.”
Net Loss Expanded, Investment Losses and Exchange Losses Are Key Reasons
Despite the improvement in gross margin, Q4 net loss widened to ¥7.112 billion, a 32.5% increase YoY and a 40.6% increase QoQ. The non-GAAP net loss, excluding stock-based compensation expenses, was ¥6.622 billion, up 37.9% YoY.
The main reasons for the expanded losses include:
- Investment loss: Q4 recorded a net investment loss of RMB 170 million, compared to investment gains of RMB 1.368 billion in the same quarter last year and RMB 310 million in Q3. This was mainly due to changes in the fair value of equity investments.
- Exchange loss: Q4 incurred a net loss of RMB 528 million from other expenses (mainly due to exchange losses), compared to net gains of RMB 254 million in the same quarter last year and RMB 310 million in Q3.
- Increased sales and administrative expenses: Q4 sales, general, and administrative expenses reached RMB 4.878 billion, a 22.8% year-on-year increase and an 18.7% quarter-on-quarter increase, mainly due to marketing activities for the new brand and products.
Business Strategy and Future Outlook
Li said that 2024 marks the beginning of the company’s new product cycle, and NIO will focus on a three-brand strategy moving forward:
- NIO brand: Continue to solidify its leadership in the electric vehicle market above ¥300,000 ($40,000) (currently holding 40% market share), focusing on technology- and experience-driven products.
- ONVO brand: Target the mainstream mass market, focusing on increasing sales and expanding the product range.
- Firefly brand: To be officially launched in April this year and begin deliveries, serving as a key driver for future international expansion.
In addition, the company is pushing forward its advanced driving and intelligent driving capabilities, with its NIO WorldModel architecture making breakthroughs that will gradually be implemented across all driving scenarios.
The company forecasts deliveries of 41,000-43,000 vehicles in Q1 2025, with total revenue expected to range from RMB 12.367 billion to RMB 12.859 billion, reflecting a year-on-year growth of 24.8%-29.8%.
Chief Financial Officer Stanley Yu Qu emphasized that in 2025, NIO will “focus more on improving profitability through technological advancements to reduce costs, optimize operational efficiency, and accelerate scalable growth.”