Nio’s battery swap business is set to see significant growth as car sales rise, with analysts predicting a rapid expansion of the number of battery swap services. According to a team of China-based analysts at Western Securities, Nio’s battery swap business is expected to break even by the end of 2026 as sales continue to increase.
The team highlighted that the key issue currently facing the business is the low number of services at each station in a single day, leading to insufficient revenue to cover operational costs and depreciation expenses. However, as Nio’s car sales ramp up and the new battery renting model gains traction, the team anticipates a rapid growth in the number of services per station.
Nio’s founder and CEO, William Li, recently mentioned in a live video broadcast that the company’s battery swap business was trending positively, with stations in Shanghai nearing profitability. Shen Fei, Nio’s vice president for power business, also noted that the company was offering over 9,000 battery swaps per day in Shanghai, with plans to reach 10,000 soon.
With 3,131 battery swap stations in China, Nio is well-positioned to capitalize on the growing demand for electric vehicles. Analysts at Western Securities project a significant improvement in Nio’s bottom line in 2025, driven by strong growth in vehicle sales. The team forecasts Nio Inc to deliver 430,000 vehicles in 2025 and 563,000 in 2026, representing substantial year-on-year growth.
Nio’s shares surged in the US market recently, reflecting investor optimism about the company’s future prospects. In Hong Kong, Nio shares continued their upward trend, rising more than 10 percent in early trading. Overall, Nio’s performance in the market has been strong, with the company up about 12 percent year-to-date.
As Nio continues to expand its presence and offerings in the electric vehicle market, the outlook for the company remains positive. With a focus on innovation, customer service, and sustainable growth, Nio is well-positioned to capitalize on the growing demand for electric vehicles in China and beyond.
