Advantages, disadvantages and opportunities for NIO to develop new energy vehicles

(1) Brand advantage.NIO has been attracting consumers’ attention since its establishment, and it is known as China’s "Tesla", which shows that its brand recognition in the field of new energy vehicles is very high.

(2) Technical advantages.At the beginning of its establishment, NIO began to lay out the core technologies of new energy vehicles. The current mass-produced models, three key technologies and components: battery packs, motors and motor controllers, are all supplied by NIO’s own companies. Compared with the core technologies of most new energy automobile companies in the hands of suppliers, NIO’s technical advantages are relatively obvious. In addition, the power exchange technology launched by NIO is also very popular among consumers. It can not only solve the problems of difficult charging and slow charging, but also upgrade the vehicle’s mileage through power exchange. This technological innovationYeah.The advantage lies in.

(III) Service advantages.NIO has been positioned as a user enterprise since its establishment, developing products with Internet thinking, solving user pain points, and providing users with intimate and comfortable services. NIO’s service cloud will connect every user center, maintenance center, interaction center, every mobile service vehicle, ES8, every NIO specialist, and user into a smart service Internet, so that one-click calls and worry-free service can be realized.

(I) Production issues.Automobile production is a very rigorous and scientifically managed process, and the level of production directly affects the final quality of the product. NIO does not have its own production base, and the OEM chooses Jianghuai Automobile. However, Jianghuai’s quality control capabilities are not outstanding in the industry. Therefore, the disadvantage in the production process is a long-term concern for NIO.

(2) Price issues.NIO currently sells two products, the ES8 price range is 40-600,000 yuan; the ES6 price range is 30-500,000 yuan. This price is already higher than that of domestic Tesla. In addition, from the perspective of cost performance, as traditional enterprises enter the new energy market, their products with the same cruising range and performance are priced in the range of 20-300,000. Therefore, the price disadvantage is a key factor affecting the current NIO products.

(III) Product layout issues.Except for the EP9 high-performance new energy sports car, the two products that have been mass-produced now, ES3 and ES6, are both large and medium-sized SUVs. Its product layout is incomplete, and it is obviously not enough to rely on two and the same type of products to win the world.

(1) Environmental quality improvement needs.Environmental problems in our country have been accompanied by economic development. In recent years, environmental problems have attracted more and more attention from ordinary people. Compared with traditional fuel vehicles, the advantages of zero emissions and zero pollution of pure new energy vehicles are particularly obvious. With the improvement of people’s living standards, the enhancement of environmental awareness, and the improvement of people’s environmental improvement needs, the development of new energy vehicles conforms to the requirements of the times, and the market prospect is bright.

(2) National policy support.From the perspective of energy security, environmental quality and the development of the automobile industry, the state regards the new energy automobile industry as the country’s seven major emerging industries. The state and localities have also introduced a series of policies to encourage the development of new energy vehicles, such as new energy vehicle subsidies, automobile production double points system, some first- and second-tier cities license indicator policies and new energy vehicle traffic. With the encouragement of the policy, NIO can seize this opportunity to establish brand perception and expand consumer market share through excellent products and high-quality services.

(3) The market space is huge.At present, new energy vehicles are still in their infancy. After several years of development, the annual sales of new energy vehicles have reached 1.20 million, and the sales of new energy vehicles account for less than 5%. With countries putting forward restrictions on the average fuel consumption of enterprises, major car companies have put forward plans for new energy vehicles to mention fuel vehicles. Around 2025, new energy vehicles will basically replace pure fuel vehicles. It can be seen that the market potential of new energy vehicles in the next few years is huge.

(1) Reduction of subsidy policies.The state’s subsidies for new energy vehicles have been gradually reduced since 2015, and new energy vehicle companies must continue to maintain their original profitsgroundReducing costs, NIO currently has fewer sales, and reducing suppliers’ costs through bargaining is very limited. It is necessary to make up for the impact of subsidy policies through technological innovation and the introduction of new profit models.

(2) financial exposure.According to public information: NIO, founded in 2014, focuses on the new energy vehicle market. And with the personal charm of its founder Li Bin, including Richard Liu, Pony Ma and Lei Jun, well-known entrepreneurs have invested in NIO for the first time. NIO has been expected and concerned since its establishment. Despite the successive mass production of ES8 and ES6, the sales of NIO new energy vehicles have also successfully exceeded 20,000 units in 2019, but the annual sales of 20,000 units cannot share the high R & D and sales costs. According to statistics, NIO’s net loss in the first three quarters of 2019 was 8.639 billion yuan, and the average daily loss was 27 million. NIO must improve the current loss situation through product profitability.

(3) The threat of competitors.With the commissioning of Tesla’s Shanghai factory, the price of domestic Tesla has dropped below NIO ES6. In addition, after traditional OEMs increased their investment in new energy vehicles, their products have surpassed NIO’s products in terms of cost performance. In addition to new energy vehicles, traditional cars and hybrid cars of luxury brands are also fighting a price war. The same price can buy models of the same level as BBA. In the case that NIO brand perception has not reached the same level of consumer recognition as BBA and Tesla, competitors’ products have formed a huge threat to NIO products.