Nio Inc (NYSE: NIO) recently announced record-breaking December deliveries, with both the main Nio brand and the Onvo sub-brand experiencing substantial growth. Analysts at Deutsche Bank attribute this success to increased promotion and improving supply.
According to a research note from Wang Bin’s team at Deutsche Bank, the boost in Nio’s deliveries in December can be attributed to enhanced promotional efforts and front-loaded demand. Nio Inc delivered an impressive 31,138 vehicles in December, marking the first time the company surpassed the 30,000 mark in a single month. This achievement contributed to a record total of 72,689 vehicles delivered in the fourth quarter, falling within the projected range of 72,000 to 75,000 vehicles.
The Nio main brand saw a delivery of 20,610 vehicles in December, representing a 14.42 percent increase from the previous year and a 33.03 percent increase from November. Onvo, on the other hand, delivered 10,528 vehicles in December, a remarkable 107.16 percent increase from November. The introduction of the L60 model in September has significantly contributed to Onvo’s success, with deliveries commencing in late September.
The Deutsche Bank team highlighted that the Nio brand’s sequential volume increase was a result of the company’s heightened promotional activities in December. Nio offered various cash subsidies for different products, including a “repeat purchasing” cash subsidy and an “aged vehicle” cash discount. Additionally, Nio provided payment waivers for BaaS customers, further incentivizing purchases.
Furthermore, the team noted that the surge in Nio-branded deliveries was also driven by front-loaded demand from January 2025 to December 2024. Concerns regarding potential changes to government subsidies may have prompted some buyers to make their purchases earlier.
In terms of the Onvo brand, the team credited the sequential volume increase to improving supply, particularly with the addition of new battery suppliers. Onvo currently has a strong order backlog, indicating promising growth prospects for the sub-brand.
Overall, Nio’s exceptional performance in December can be attributed to a combination of effective promotional strategies, increased demand, and enhanced supply chain management. With the company’s continued focus on innovation and customer satisfaction, Nio is well-positioned for further success in the electric vehicle market.
