New report reveals what steps Nio has taken to boost sales
Nio is finally getting all-in on selling cars, making adjustments to its organizational structure, customer engagement, and sales team management to boost sales, according to local media.
Nio delivered 23,520 vehicles in the second quarter, down 6.14 percent year-on-year and down 24.23 percent from the first quarter.
Weak deliveries weighed on Nio's financial performance, with revenue coming in at RMB 8.77 billion in the second quarter, falling short of Wall Street analysts' expectations.
In the analyst call after the second-quarter results were announced, William Li spent a lot of time explaining the company's plans to strengthen its sales capabilities.
Nio realized in June that it was lagging behind its competitors in terms of the number of salespeople and their ability to sell, Li said at the time.
Nio is expanding its sales team in line with a 30,000-unit-per-month sales capacity, and hopes to build that capacity by the end of September, he said.
Since July, Nio has been more aggressively expanding its user touchpoints and sales channels and further expanding its sales team across the country, Li said, adding that these initiatives will enhance Nio's sales capacity and drive sales growth.
Despite the current challenging market environment and increasing competition in the EV market, Nio is well-positioned to meet the challenges with its core technology, product layout, sales capabilities, manufacturing and supply chain, he said.
Nio believes the company is capable of focusing on the execution of its marketing and sales strategy to drive a steady increase in deliveries, while further optimizing its cost structure and improving operational efficiency, according to Li.
Nio's test drive numbers hit a record high in August and are now around 10,000 per weekend, a significant increase from June and July, he said.
However, it takes some time to go from test drives to orders, Li added.
($1 = RMB 7.2889)
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