NIO Admits Rising Cost Pressures, Working with Supply Chain to Stabilize Gross Margin

On the earnings call on March 10, NIO CFO Qu Yu stated that the company is facing significant cost and gross margin pressures this year due to rising prices and volatility of key raw materials such as copper and lithium carbonate, which are expected to persist into 2026. Given the current uncertainty surrounding the full-year outlook, NIO is working closely with its supply chain partners to enhance efficiency and mitigate adverse impacts. Despite these challenges, the company maintains its target of achieving a 40%–50% year-over-year increase in vehicle deliveries and remains committed to reaching profitability on a non-GAAP basis. In 2025, NIO’s services and community business segment already turned profitable, generating RMB 10 billion in revenue, and is expected to continue contributing positive gross profit this year. Additionally, each vehicle model has a dedicated team focused on balancing sales volume and gross margin to drive high-quality growth.