Nio 'will break into profit by 2026'

Nio (9866) is on track to doubling the number of electric vehicles it sells next year and breaking into profit by 2026, chief executive Li Bin said on the company's 10th anniversary.

"Only a few automakers will survive the most vicious phase of competition in the domestic EV sector," he warned.

Nio's third quarter loss rose by 11 percent year-on-year to 5 billion yuan (HK$5.37 billion) while sales for the period reached a record high of 61,900 units.

UBS saying the intense competition will deepen in the first quarter next year as Beijing's stimulus efforts, including recent trade-in subsidies, will pull demand forward.

Sales of sedans in China surpassed 2.7 million in October, 9.1 percent higher than a month ago. UBS estimates 20 percent of the orders are propelled by subsidy policies.

The inventory held by dealers is at a low level that can only last for 1.1 months, the bank said.

Nio is one of five Chinese auto brands that recorded losses in the third quarter. Others include Zeekr owned by Geely (0175), XPeng (9868), and Leapmotor (9863).

More than 15 domestic automakers recorded profits in the period, with Chinese EV giant BYD's (1211) net profit increase by 18 percent year-on-year to 25.2 billion yuan.

Staff reporter