Introduction

Nio, the rising electric vehicle (EV) giant, has laid out an ambitious product roadmap for 2025, revealing plans for multiple new models and significant upgrades during discussions with analysts from Goldman Sachs. Insights shared during a recent earnings call on November 20, along with a detailed follow-up from Goldman Sachs' team, highlight Nio's focus on expanding both its Nio brand and new sub-brands.

Product Cycle Overview

According to Goldman Sachs analyst Tina Hou's report, after visiting Nio's management in Shanghai on December 26, the company is slated to kick off an exciting new product cycle from 2025 to 2026. Key releases will include the much-anticipated ET9 executive sedan, a pair of SUVs under the Onvo brand, and an additional SUV from the newly introduced Firefly brand.

ET9 Executive Sedan

One standout in this lineup is the ET9, which is built on Nio's next-generation 900-volt platform, NT 3.0. This flagship model is set to officially launch with deliveries beginning in March 2025, starting at a price of approximately RMB 788,000 (around $108,000) for the standard version. Limited editions have already sold out, indicating robust consumer interest.

Facelifted Models

In the second half of 2025, Nio plans to release facelifted versions of its popular models, which will feature enhanced specifications, lower prices, and advanced technology including the introduction of three LiDAR sensors for improved safety and autonomous driving capabilities—an increase from the single LiDAR currently used in existing models.

Onvo Sub-Brand

The Onvo sub-brand is set to introduce a 6/7-seater SUV designed to compete directly with offerings such as Li Auto's Li L8, followed by a 5-seater SUV targeting the Li L7 market. With larger dimensions and a price point that undercuts its rivals, Nio's management expresses confidence in the strong sales performance of these upcoming models, especially considering the demand for family-oriented vehicles.

Firefly Brand Launch

Furthermore, the Firefly brand aims to tap into a different segment of the market with its first model, which is expected to begin deliveries at the end of April 2025 following its pre-sale launch priced attractively at RMB 148,800 (around $20,300). Forecasts suggest that Nio could potentially see 50,000 units delivered of this model alone by the end of 2025, outpacing initial expectations.

Challenges and Operational Efficiencies

Despite facing challenges in recent months, such as underperforming sales of its NT 2.0 models—where actual sales fell short by 40-50% of projections—Nio management is working diligently to improve operational efficiencies. Bottlenecks in the supply chain and staffing issues are being addressed as the company aims for ambitious sales targets of 300,000 to 400,000 units annually in the short to medium term, with aspirations for up to 600,000 units in the long run.

Market Potential

With the Chinese passenger car market thriving, boasting sales exceeding 20 million units each year, the EV sector remains fragmented, presenting opportunities for growth. Nio’s management believes there is substantial market potential for several manufacturers to produce over 1 million vehicles annually, a critical benchmark for sustainability in this competitive landscape.

Conclusion

As Nio gears up for 2025, the combination of innovative products, strategic pricing, and a robust product lineup positions the company to capture market share and meet the evolving demands of consumers in the fast-paced world of electric mobility.