NIO - DBS Research 2025-03-24: Brand Building Slower Than Expected, Downgrade To HOLD.

• NIO, a leading Chinese premium EV maker known for its battery swapping technology, has guided for an unexciting 1Q25 outlook. This implies that sales of its new brand – ONVO L60 - is taking longer than expected to deliver results.

NIO's 4Q24/FY24 results missed on higher-than-expected selling expenses and FX/investment losses.

• - Read this at SGinvestors.io -
• On a positive note, the reduction in BOM (bill of materials) cost did offset some of the discounting pressure and helped vehicle margins improve 1.2ppts y-o-y (flat q-o-q).

Weak 1Q25 guidance implies sales rate of ONVO L60 is slow (2M25 sales at 10k vs 4Q24’s ~20k units).

• - Read this at SGinvestors.io -
• Also, vehicle margin is expected to be under pressure in 1Q25 before improving in coming quarters.

NIO's 2025 new model cycle.

• Read more at SGinvestors.io.

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/.

Read also DBS's most recent report:
2026-03-16 NIO Inc - Catalysts In Place For Re-rating.

Previous report by DBS:
2025-11-26 NIO Inc - Sector Headwinds Offsetting Operating Leverage Improvement.

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 Dividend Payout Dates & Corporate Actions,
NIO News