NIO’s sales volume was up 12% y-o-y to 61.9k units in 3Q24, yet total revenue fell 2.1% y-o-y to RMB18.7bn, due to lower vehicle ASP (- 14% y-o-y), impacted by higher incentives, which led to a 4.1% y-o-y decline in vehicle sales, to RMB16.7bn.
3Q24 results slightly missed on lower vehicle sales revenue.
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Opex-to-sales ratio was up 4.9ppt y-o-y to 39.8% but remained flat q-o-q. Non-GAAP net loss narrowed 11.5% to RMB4.4bn, vs consensus of RMB4.24bn.
By end of Sep 24, NIO has net cash and cash equivalent of RMB24.3bn, and achieved positive operating cash flow (OCF) in the quarter.
4Q24 revenue guidance slightly missed.
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NIO cited the m-o-m decline in October deliveries (21.0k sales) was due to lower NIO brand sales caused by reduced incentives (~Rmb15k/car) and a slow ramp up in production of ONVO L60 (4.3k sales in Oct) due to technical challenges.
While management expects ONVO L60’s monthly production to hit 10k by Dec 2024 and 20k by Mar 2025, with it opening more ONVO salespoints to some 300 stores by end-2024 (current 190) to drive sales, ~50%- 60% of potential buyers decided not to purchase ONVO L60, as they were unable to receive deliveries before end-2024 to enjoy the NEV subsidy.
Third brand to debut at NIO Day next month.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
