Many readers are already familiar with NIO’s business progress, but how is the company managing internally? This article offers a rare glimpse.
NIO (NYSE: NIO, HKG: 9866) is growing rapidly, including a rapid expansion of its replenishment facilities, partnerships with a large number of companies, entry into overseas markets, a listing in Hong Kong and an upcoming listing in Singapore.
So beyond the progress that is seen on a daily basis, what is the current landscape inside the company? Tencent News offers a rare glimpse in an article today.
Facing fierce competition in the new energy vehicle (NEV) market, NIO is expanding rapidly in every aspect of its business, organization, supply chain and finances, which in a sense dilutes the company’s resources, efficiency, growth dynamics and everyone’s interests, the article says.
The title of the article, which could be translated as “NIO’s inflation,” says that the expansion of the company’s business not only requires accurate decision making, but also makes it challenging for the organizational structure to accommodate it.
Here are some of the key points made in the article:
The sub-brand codenamed “ALPS” is to NIO what the Model 3 is to Tesla, with the NIO brand targeting the high-end, customer-oriented market and ALPS taking on the task of expanding sales.
Some NIO employees are currently confused about the setup of the ALPS team, but they believe the company’s founder, chairman and CEO William Li has his reasons for choosing to do so.
NIO’s delivery performance looks weak this year, mainly because potential customers are waiting for new models. The company has already begun deliveries of the ET7 sedan and will also begin deliveries of the ES7 SUV as well as the ET5 sedan this year.
Although NIO’s production is limited by parts availability, one NIO salesperson said the delivery cycle for customers has not been significantly delayed.
The delivery cycle for SUV models (ES8, ES6, EC6) is between one and two months, while the ET7 has a lead time of about three months because it is in a capacity creep.
Entering the international market is NIO’s focus in five years. Today, Li, 47, has adapted to meeting with the Chinese team every day during the day, the European team at night, and the American team in the early morning.
Faced with the common risk of Chinese companies delisting from the US, NIO is maximally prepared to take on investors in new locations through quick listings in Hong Kong and Singapore.
The period of rapid growth in China’s Internet industry is seen as over, and those in the sector are beginning to seek new havens, with some from tech giants including Alibaba and ByteDance coming to new car makers including NIO and Li Auto.
Li is looking to bring in more senior talent, but NIO’s hiring pace has slowed after a new round of Covid exploded this year, and XPeng and Li Auto are cutting back on hiring.
If you wish to learn more, you can click here to get the page automatically translated by Google Translate.
Original Chinese version: https://mp.weixin.qq.com/s/Jfg6nAOUJMhuljVL33hgfg
Note: Weilai refers to NIO, Li Bin refers to William Li, Xiaopeng refers to XPeng, and Ideal Motors refers to Li Auto in the automatic translation.