NIO CEO Warns China Auto Sales Could Fall 20%, Sticks to 50% Growth Goal
NIO•NIO CEO William Li warned China's auto retail sales fell 19.5% in Jan-May and could shrink 15-20% this year, yet reaffirmed NIO's 40%-50% sales growth target. The company has invested 68.8 billion yuan in R&D and 20 billion yuan in charging and battery-swap infrastructure.
1. CEO Warns of Industry Contraction
William Li described China's auto market as entering its most brutal phase, reporting a 19.5% drop in retail sales in the first five months and a further 22% decline in early June, and forecasting a 15%-20% contraction by year-end.
2. Reaffirmed Growth Target Despite Downturn
Despite the gloomy outlook, Li reiterated NIO's goal of achieving 40%-50% sales growth in 2026, attributing resilience to the company's multi-brand strategy and ongoing market share gains in premium EV segments.
3. Significant R&D and Infrastructure Investments
NIO has poured 68.8 billion yuan into research and development and another 20 billion yuan into expanding charging and battery-swap networks, aiming to support irreversible EV transition and enhance customer experience.
4. Robust Delivery and Profit Performance
The company delivered 150,526 vehicles between January and May, up 68.7% year-over-year, recorded a 1.25 billion yuan operating profit in Q4 2025 and 68 million yuan in Q1 2026, and guided for 110,000-115,000 vehicle deliveries in Q2.
