NIO Inc. posts 21.5% YoY growth in Q1 2025 revenue

Shanghai (Gasgoo)- NIO Inc., a Chinese main smart electric vehicle (EV) maker, reported a 21.5% year-on-year increase in total revenue for the first quarter (Q1) of 2025, reaching RMB12,034.7 million (US$1,658.4 million). However, revenue declined by 38.9% compared to the previous quarter, reflecting seasonal headwinds and lower delivery volumes.

Vehicle sales generated RMB9,939.3 million (US$1,369.7 million) during Q1 2025, marking an 18.6% growth from a year ago but a steep 43.1% drop from the fourth quarter (Q4) of 2024. The year-on-year (YoY) growth was primarily driven by higher delivery volumes, though this was partially offset by a lower average selling price due to a shift in product mix. The quarter-on-quarter (QoQ) decline, meanwhile, was largely attributed to seasonal factors affecting deliveries.

In total, NIO delivered 42,094 vehicles in Q1 2025, comprising 27,313 units from its premium NIO brand and 14,781 from its family-oriented ONVO marque. This figure represented a 40.1% rise from the same period last year but a 42.1% decline from Q4 2024.

In Q1 2025, the company's gross profit surged 88.5% YoY to RMB919.6 million (US$126.7 million), though it fell 60.2% from the prior quarter. In the same period, its gross margin stood at 7.6%, up from 4.9% a year earlier but down from 11.7% in Q4 2024. The YoY improvement was fueled by increased contributions from higher-margin services such as parts, aftersales, and R&D offerings, alongside improved vehicle margin and lower losses in the company's power solution business. The QoQ decline was mainly due to reduced vehicle margin.

Vehicle margin improved to 10.2% in Q1 2025, up from 9.2% in Q1 2024, benefiting from lower material costs per unit. However, it dropped from 13.1% in Q4 2024 due to higher per-unit manufacturing costs resulting from decreased production.

NIO posted a net loss of RMB6,750.0 million (US$930.2 million) for Q1 2025, a 30.2% jump from the same period last year but a slight 5.1% improvement over the previous quarter. On a non-GAAP basis — excluding share-based compensation — the net loss was RMB6,279.1 million (US$865.3 million), rising 28.1% YoY and narrowing 5.2% QoQ.

Net loss attributable to ordinary shareholders totaled RMB6,891.1 million (US$949.6 million) in Q1 2025, up 31.1% from Q1 2024 and down 3.4% from Q4 2024. On an adjusted basis, excluding share-based compensation and non-controlling interest adjustments, the loss stood at RMB6,275.6 million (US$864.8 million).

NIO's R&D expenses came in at RMB3,181.4 million (US$438.4 million) in Q1 2025, increasing 11.1% YoY but decreasing 12.5% QoQ. The YoY rise was mainly driven by increased investment in new product and technology development, along with higher staffing costs. The QoQ decline reflected reduced development costs at different project stages, partially offset by rising personnel expenses. On a non-GAAP basis, R&D spending was RMB2,914.4 million (US$401.6 million).

Looking ahead to the second quarter, NIO expects vehicle deliveries to reach between 72,000 units and 75,000 units — a YoY increase of approximately 25.5% to 30.7%. Total revenue is projected to fall between RMB19,513 million (US$2,689 million) and RMB20,068 million (US$2,765 million), representing a YoY growth of 11.8% to 15%.