XM does not provide services to residents of the United States of America.

China's Nio, behind on growth targets, aims to tighten cost control



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 1-China's Nio, behind on growth targets, aims to tighten cost control</title></head><body>

Adds details and background

SHANGHAI, Dec 12 (Reuters) -Chinese electric vehicle (EV) maker Nio 9866.HK will seek to improve efficiency and cost control as it seeks to spur sales growth that is two years behind schedule, its CEO said on Thursday.

William Li told reporters at an event in Shanghai that it will also start production at its third factory in the second half of next year, and that it aimed to achieve monthly deliveries of 20,000 cars from its second, Onvo brand, by March 2025.

The company has had 30-40% growth in the last three years but that was not satisfactory, he said. Li said last month the company aims to double sales in 2025 from this year.

Nio, one of China's largest EV players by sales, has been fighting price competition in China by broadening its customer base and boosting sales with cheaper models. The company has also trimmed its workforce and deferred long-term projects that would not contribute to financial performance within three years.

It launched its affordable Onvo brand in May, with the Onvo L60 SUV with a sticker price starting at 219,900 yuan ($30,300). Tesla's TSLA.O Model Y starts at 249,900 yuan in China.

Asked about the United States' latest curbs on semiconductor-related exports to China, Li said they were evaluating the impact.

There were sufficient domestic alternatives for high computing power chips in cars but a bigger challenge was to replace the hundreds of thousands of foreign chips in EVs that cost $1 or $2 each with domestic options, he said.



Reporting by Zhang Yan and Brenda Goh; Editing by Clarence Fernandez and Barbara Lewis

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.