A Check-in on NIO's Progress @ Shanghai Autoshow
A Check-in on NIO's Progress @ Shanghai Autoshow
Conversations with Li Bin & Shen Fei on Growth, Innovation, and Success
The following is a summary of an interview with NIO's CEO Li Bin and Senior VP of Energy Shen Fei. The original content was posted by 不是郑小康 (original post) on Weibo, and is then translated and summarized by me for added context.
Product Roadmap
NIO's lineup is expanding, with 8 new cars coming in July. These models should cover 80% of the market for cars priced above 300,000 RMB. No small sports cars or MPVs for now, but hey, as long as people are buying NIOs, that's cool with us.
The electric vehicle market is a bit all over the place right now. People throw around big numbers, but we prefer to focus on unique advantages for each brand. I mean, even Wuling Hongguang can boast about having the largest space within 5 million RMB, right?
Production
Getting to 20,000 vehicles a month for these 8 models is doable, especially since our two factories have got the capacity. It's all hands on deck to make it happen.
Right now, our order-to-delivery time is 21 days, but we're aiming for 15.
Brand Identity & Principles
NIO is a brand that needs to be experienced and appreciated, and while it may not satisfy everyone, the company is committed to doing the right thing over the long term. In terms of communication, NIO adheres to its principles but recognizes the need for more innovation. The company avoids certain terms and features, like the word "luxury" and large screens for the second row of seats, as they do not conform to NIO's values. Why would we let our children, and our users' children, watch a large screen in the second row? Staying true to its principles is essential for NIO's success.
Value and Quality Focus
For our ES6, it's all about value – from the product and service to how it makes you feel. It's not realistic for one brand to cover every price point, so we're sticking to the 300,000 - 600,000 RMB range where we can offer the best value.
Value over price wars, that's our motto. We're upping our service game with 1,000 battery swap stations and 10,000 charging piles. These also all have huge value.
Why are Tesla Model S/X expensive? Because the specs are high. Same is true for us. For example, we have 23 speakers, so of course we will have longer cables and more wiring harness. We also have 1000 TOPS of computing power, and we've spent a lot of money on things you cannot see.
Managing Long-term Complexity and Innovation
For areas that require long-term R&D and investment, we have high level of standardization. Autonomous driving is one example. People also ask why we don't offer a single motor version. The same goes for audio systems. We face some pressure when the car leaves the factory (in terms of cost), but in 5-6 years, people will appreciate the frequent updates and constant improvements. This is only possible when there’s high level of standardization in software.
For things unrelated to software, like paint and interiors, we've got one-time complexities under control. We use a three-dimensional storage system in the paint shop and a dedicated AGV on the assembly line to keep things running smoothly without driving up costs.
The ES6 will have loads of color options. We've thought it through, and we're sticking to our guns on long-term investments like autonomous driving and audio systems. Sure, there's some pressure when the car rolls out, but in 5-6 years, people will love the quality.
We get lots of feedback, but we're confident in our choices and managing long-term complexity. It's all part of being a smart car company.
Charging Infrastructure and Energy Strategy
Our highway charging network will come with standard battery swap stations, and nearby charging piles adjust dynamically based on capacity, rent, and user dwell time.
We've got 1,356 battery swap stations, and we're planning for 2,300 by year's end. If not, you might see Shen Fei in a different role next year, but that's not my problem (just kidding!). Our energy team is on top of things, no worries there.
Redefining Luxury and Pricing Strategy
Lexus is a respected brand with a loyal customer base, known for its excellent service. In today's market, redefining luxury means providing strong products, services, and community. In the past, we talked about performance and acceleration, but today anyone can achieve 0-100 km/h in 3s or 4s, right? The concept of luxury has evolved, and we have been continuously enriching our offerings since 2017.
Each company has its own pricing strategy. NIO focuses on the user's interests, preferring a pay-per-use model, which is considered fairer and more in line with user interests. NIO will not have a car priced at 1 million RMB in the short term, but the company has invested in Lotus and other niche luxury markets.
Connected Technology
The next version of NOP+ and NAD will be developed with the same technology stack. By the end of June, NAD service will be tested in a few cities, such as Shanghai, in collaboration with regulatory authorities. This involves dealing with complex issues, not just technical ones.
If it is an AD service, we will definitely be responsible, but we cannot say unlimited responsibility. So this is not purely a technical issue; there are some complex things.
Smartphone
We need to talk less about smartphones. Once we mention smartphones, people think we want to create an entire ecosystem, and companies that do ecosystems don't fare well. Our logic is simple: Apple's iPhone is not open enough, like UWB, which is strange. Several phone manufacturers in the Android camp are making cars, so cooperating with them becomes a bit awkward. But smartphones are definitely not our main business; our main business is cars. It's not easy for us to achieve fast, stable, and economical results. We're not gods who can do everything perfectly from the beginning. I can guarantee that it will be an Android flagship, with a decent design and excellent connectivity with NIO cars. I want to manage everyone's expectations.