NIO Inc. (NYSE:NIO) Q3 2023 Earnings Call Transcript

In some regions and areas, our power swap stations are still not widely accessible. In this case, we will need to also speed up and enhance our infrastructure coverage so that we can further boost the wider adoption of electric vehicles. So basically, two main reasons. The first is regarding the consumption habits of the premium vehicle users, and the second is mainly because of the coverage of the infrastructures for electric vehicles. But we believe that this trend of convincing ICE users of buying EVs, or this overall trend of transforming into battery electric vehicles, will be picking up its speed. Because we also find that some of our peers and competitors, before they only had hybrid vehicles or range-extended vehicles, but now they are also launching their battery electric vehicles.

Such strategy will also push the transformation of the entire industry. So we are actually happy to see such transformation. And also, many car companies are now also installing and expanding their charging network, and NIO is working on our battery swap network. With wider infrastructure, we will also boost the adoption of the battery electric vehicles. So, overall speaking, we believe that 2024 will be better off than in 2023, because in 2024 we will also be having a more stable product portfolio without frequent product launch and delivery, which has also slightly disturbed our overall execution.

Jason Getz: Got it. Thanks. And then a quick follow-up. On the battery swap partnership side, is there any kind of design changes that your partners would have to do to their vehicles in order for them to use the swap stations? And if so, have you guys talked about what percent of mix of vehicles they produce might need to be kind of changed or edited in the production process in order to do battery swapping?

William Li: [Foreign Language]

Unidentified Company Representative: Actually, we have shared the battery spikes and also the design details of our battery packs for the mass market brand to our battery swap partners. And they will need to design and engineer their vehicle products, mainly chassis interfaces, following our battery standards. It will take some time for them to decide on the right models and complete the product R&D. But the overall investment and R&D expenses for developing such new models based on our battery standards won’t be very high.

Jason Getz: Got it. Thank you.

Operator: As there are no further questions, now I’d like to turn the call back over to the company for closing remarks.

Unidentified Company Representative: Thank you again for joining us today. If you have further questions, please feel free to contact NIO’s investor relations team through the contact information provided on our website. This concludes today’s conference call. You may now disconnect your line. Thank you.

William Li: Thank you.