NIO Inc - DBS Research 2023-08-10: Sales Volume Acceleration

NIO Inc - Sales Volume Acceleration

NIO (SGX:NIO) | SGinvestors.ioNIO (SGX:NIO)
  • NIO (SGX:NIO)’s premium Battery Electric Vehicles (BEV) business is seeing an improvement with Jul 23 volume hitting the 20k mark for the first time (+104% y-o-y and +91% m-o-m), a very encouraging sign for the delivery pace of its new model.
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  • A new pricing strategy plus new models like ET7, ET5, and ES6 from the NT2.0 platform have lifted sales. Due to the slow 1H sales growth, we expect a small miss compared to the 2023 sales target of 200k units.

New BEV brand key to targeting affordable EV market.

  • NIO’s budget electric vehicle (EV) brand is expected to be ready by 2025. The new product line (probably at an ASP range of RMB200-300k) can cater to both the domestic and export markets and is also a potential volume driver in the mass-market segment.
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Cash injection a lifeline.

  • The capital injection by the Abu Dhabi Government of US$738.5m beefs up the cash coffers for the company to build its business as market competition intensifies. Capex for new products, charging infrastructure, and working capital are expected to drain its cash balance, as NIO is expected to remain loss-making in the coming few years.
  • The existing cash liquidity to cover the cash burn rate is estimated at around 20-24 months prior to the cash injection.

Rating and target price.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Rachel Miu DBS Group Research | 2023-08-10

Read also DBS's most recent report:
2023-11-20 NIO - Improving 2H23 Outlook.

Previous report by DBS:
2023-09-04 NIO Inc - Deepening EV Market Penetration; Ready To Ramp Up Sales Delivery.

Price targets by other brokers at NIO Target Prices.

Listing of research reports at NIO Analyst Reports.

Relevant links:
NIO Share Price History,
NIO Announcements,
NIO Dividends & Corporate Actions,
NIO News Articles


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