At the second-quarter earnings call for NIO, founder, chairman, and CEO Li Bin addressed the company's performance, stating that in an increasingly competitive market, the pursuit of superficial growth is no longer sufficient. He emphasized that the company has entered the third phase of high-quality development since last year, and the focus now shifts to achieving growth that is both substantive and sustainable.
Li Bin questioned the current industry-wide obsession with sales volume rankings, asking why discussions so rarely center on revenue rankings or gross profit comparisons. He suggested that this narrow focus may itself be misleading. True high-quality growth, he argued, cannot be measured solely by the number of vehicles sold—even though NIO's own sales growth remains respectable. What matters more is whether revenue growth is built on a solid foundation and whether total gross profit is rising in tandem. That, he said, is what healthy growth should look like.
He noted that NIO has deliberately avoided a strategy of trading price for volume this year, with gross margins remaining broadly stable compared to the first quarter and the end of last year. Even with anticipated cost pressures in the industry during the second half, the company's guidance still expects to maintain this margin stability, which reflects its underlying operational logic and quality.
From an operating profit perspective, Li Bin said the company has already validated its ability to convert technological innovation, product development, and service systems into profitability—an essential pillar for sustainable growth. He revealed that since last year, NIO's sole internal operational target has been the EBIT (Earnings Before Interest and Taxes) metric.
He also highlighted the company's pricing power, stating that the average transaction price in the second quarter was RMB 406,000, rising to RMB 434,600 in July. This, he said, has already surpassed the likes of Mercedes-Benz, BMW, and Audi comprehensively. Li Bin reiterated that NIO will remain focused on the Chinese market and the premium segment, where significant room for growth still exists. As for diversifying into second or third growth curves, he stressed that now is not the time, given the company's finite resources and his own limited energy. A pragmatic approach, he noted, is to solidify the company's position in the domestic market first.
Regarding the sub-brand Onvo, Li Bin clarified that the company has not publicly disclosed details about its strategic new models, acknowledging that external speculation and discussions often do not align with reality. He reaffirmed that Onvo is positioned to build high-quality family vehicles, benchmarked against the upper tiers of Toyota and Volkswagen, catering to unmet household needs. He cautioned that those expecting an ultra-cheap Onvo will be disappointed, but he assured that the brand's offerings will certainly deliver value for money.