NIO's sales results in July were pretty disappointing, as the company managed to deliver only 837 electric cars, including 673 ES6 (first full month of sales) and just 164 ES8 (57% lower than a year ago and lowest since introduction).
However, the past month NIO was busy with ES8's battery recall, which required to shift battery pack production for the recall instead of for new cars. All the 4,803 NIO ES8 received new batteries.
The other factors that negatively impacted results were changes in subsidies for EVs and overall China’s macroeconomic and auto market conditions, described as challenging.
So far this year, NIO sold 8,379 electric cars (including 7,293 ES8 and 1,086 ES6). Next month is expected to be much better with a target of 2,000-2,500 sales.
NIO ES8 sales in China – July 2019
William Li, founder, chairman and chief executive officer of NIO said:
“Our deliveries in July were negatively impacted by multiple factors. In July we completed our voluntary battery recall for 4,803 ES8s. During the month, we prioritized battery manufacturing capacity for this effort, which significantly affected our production and delivery results. In addition, some deliveries were pushed forward into June in anticipation of further electric vehicle subsidy reductions that took effect at the end of June. Lastly, China’s macroeconomic and auto market conditions remained challenging, exacerbated by the US-China trade conflict and the decline in passenger vehicle sales on a year over year basis for 13 of the past 14 months.”
“On the positive side, we completed the ES8 battery recall in approximately half the time compared to our original timeline. Having taken swift and transparent actions throughout the recall process, we are happy to report that we see users’ confidence in the safety and quality of our vehicles quickly returning. Looking ahead, with battery capacity allocation back to normal, we will accelerate deliveries and make up for the delivery loss impacted by the recall. We expect August to be a much stronger month, and target to deliver between 2,000 and 2,500 vehicles,”