NIO Sales Rise 27%, But Limited By Supply Chain Shortages
Chinese EV startup NIO has released its July sales figures, and they look quite good. The company had 10,052 vehicle deliveries last month, which is a 26.7% increase over July 2021. Extrapolated out to a full year, that’s more than 120,000 new EVs on the road in China and Europe. Of course, we expect continued growth, so the coming 12 months should bring far more than 120,000 new NIO electric vehicles hitting the road.
Throughout the company’s young life, it delivered 227,949 electric vehicles through the end of July.
Despite the 27% growth year over year, NIO indicates it could have been higher if not for some supply chain challenges — and we’re not talking about automotive chips or batteries this time. “The production of the ET7 and the EC6 in July 2022 was constrained by the supply of casting parts,” NIO states, before adding that it “has been working closely with supply chain partners and expects to accelerate vehicle production in the following months of the third quarter of 2022.”
NIO Battery Swapping Station Update
Aside from vehicles, NIO has been rolling out more and more of its unique battery swapping stations, making it easier and easier for customers to quickly go from “low battery” to “full battery.” The 1,000th NIO battery swap station was installed in Tibet on July 6. Further, the station is powered by 100% clean renewable energy. By the end of the month, NIO reached 1,047 battery swap stations in China.
While that does sound like an impressive figure, getting an update on the number of battery swaps is actually astonishing. The company reports that it has conducted 10 million battery swaps.
And don’t forget the chargers (what every other electric car in the world relies on). There were “948 Power Charger stations with 5,137 chargers and 828 destination charging stations with 5,083 chargers in operation” on the last day of July 2022.
NIO European Factory Launches
NIO has other big news much further north as well. On July 29, NIO launched the NIO Power Europe Plant in Pest County, Hungary, which surrounds Belgrade. The factory isn’t quite operational yet, but it will be in September. If opening a factory in Europe isn’t a sign of big growth plans, I don’t know what is. It will certainly be interesting to see how well NIO is received in Europe over time, and especially after opening this European factory. Will the Chinese “smart electric vehicle” company be able to make big inroads into Europe and take advantage of the fast maturing market?
The factory is not for vehicles, but rather for producing battery swapping stations and after-sales service for them. The company summarizes the importance of the moment and a few details about this new factory: “NIO Power Europe Plant is NIO’s first overseas plant. It will be around 10,000 square meters. The plant will cover manufacturing and after-sales service of battery swapping stations, training for power operations in Europe, and the R&D of power products. Its launch will further enhance the deployment and service efficiency of NIO Power in Europe, bringing a better ownership experience for European users.”
NIO entered the Norwegian market last year, and the next European markets it will be entering include Germany, the Netherlands, Sweden, and Denmark — all in the second half of this year. How will NIO do in these markets?
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