NIO has accelerated its push into diverse market segments with a clearer multi-brand structure. In Q2 2025, it sold 72,056 vehicles, a robust 25.6% increase year-over-year. This includes 14,593 units from the premium NIO lineup, 6,400 units from the family-oriented ONVO brand, and 3,932 units from the compact Firefly sub-brand. This three-pronged approach is helping NIO reach a broader range of buyers.
Despite rising deliveries, NIO’s profitability remains under pressure. In Q1 2025, its gross margin fell to 7.6% down sharply from 13.1% in Q4 2024, due to elevated production costs and R&D The automaker cut R&D budgets 20–25% and trimmed marketing spend to under 10% of revenue. It also leveraged cross‑brand synergies with sister companies to reduce expenses. Still, its cash reserve dropped from RMB42 billion to RMB26 billion, with analysts warning of a liquidity risk if benchmarks aren’t met
Key Takeaways:
Brand Breakdown:
- Q2 2025 Deliveries: 72,000+ units delivered
- NIO: Premium models
- ONVO: Mid-range family vehicles
- Firefly: Compact, entry-level EVs
- Margin Pressure: Gross margins declining due to high costs
- Cash Concerns: Reserves dropped significantly despite cost-cutting
- Expansion: Firefly expanding to Europe; ONVO models rolling out globally
What Lies Ahead for NIO?
NIO’s ability to scale while managing financial risk will define its next chapter. The multi-brand strategy is delivering results in terms of customer reach and sales volume. However, the company must improve its profit margins and stabilize cash flow to remain competitive in the global EV landscape.
With investor interest still strong and international demand rising, NIO’s path forward depends on tighter operations and smart market execution.
