The electric vehicle market is facing a reality check. Nio's CEO, William Li, has issued a stark warning: November will be challenging, and December's outlook remains uncertain. This comes amidst a downturn in demand, largely triggered by subsidy cuts within the industry. But what does this mean for the average consumer? And what are the implications for the future of electric vehicles? Let's dive in.
Nio, a prominent Chinese EV maker, is gearing up to release its November delivery figures. The company is focused on ramping up production of its popular models, the Onvo L90 and the Nio ES8. This is a critical time for the company, as it navigates the choppy waters of a changing market.
Delivery Numbers: A Glimpse of the Past
In October, Nio delivered a record-breaking 40,397 vehicles across its three brands. This was the first time the company surpassed the 40,000 unit mark. Based on the company's Q4 guidance of 120,000-125,000 vehicles, Nio expects to deliver between 79,603 and 84,603 units in November and December combined. Earlier in the year, Li had set a target of reaching a 50,000-unit monthly rate in the final quarter.
Industry Demand: The Unexpected Downturn
Li revealed that the industry was caught off guard by the severity of the demand slump in October. New orders fell significantly across most manufacturers. "Before mid-October no one anticipated this," Li stated. "In late October many still hoped for a rebound. In November the industry has confronted reality: new-order volume has fallen significantly, with a severe decline across most companies."
But here's where it gets controversial... Li noted that many competitors remain psychologically unprepared for the downturn, expecting a seasonal year-end boost that may not materialize. The market had anticipated strong demand as customers rushed to take advantage of subsidies before they decreased in January 2026. Customers were eager to save RMB 15,000 (approximately $2,100) before the subsidies were reduced.
Nio's Strategy: Staying the Course
Despite the challenging environment, Nio plans to maintain its price stability strategy. Li emphasized that the true challenge in the final quarter is demand. However, Nio has a cushion due to existing orders for vehicles like the new ES8. For the ES8 specifically, the company is aggressively pushing to maximize deliveries before year-end.
And this is the part most people miss... The waiting time for the ES8 is currently 22-23 weeks, with orders placed today expected to be delivered in late April 2026. Each additional unit delivered this year earns an extra RMB 15,000 (approximately $2,100). The company is therefore pushing to deliver aggressively in Q4, and the entire ES8 supply chain is operating under high tension.
Looking Ahead: The Bigger Picture
In the same media Q&A session, Li expressed interest in the robotics industry and its potential integration with the battery swapping technology Nio has been developing. This suggests a forward-thinking approach, looking beyond immediate challenges to explore future opportunities.
What do you think? Are you surprised by the downturn in demand? Do you think Nio's strategy is the right one? Share your thoughts in the comments below!
