On the evening of November 20th, NIO officially named its third brand "Firefly Firefly" and announced its first product with the same name as the brand. Firefly is positioned in the high-end small car market and will further enrich NIO's product portfolio, while efficiently contributing to sales through existing sales channels. Firefly's positioning in NIO is equivalent to the MINI brand of BMW Group.
Based on NIO's 10 years of deep cultivation in the high-end pure electric market, Firefly will comprehensively exceed user expectations in design, safety, space, intelligence, and energy efficiency, and usher in the intelligent electric era of global high-end small cars. According to the plan, the Firefly brand will be officially released on NIO Day 2024 on December 21, and its first model will be delivered in the first half of 2025.
According to the person in charge of NIO, after the delivery of the first model L60 of the sub brand Ledao, which is positioned in the mainstream home market, the L60 has gained increasing recognition from home users due to its driving space, low energy consumption, safety features, and charging and swapping experience. Next, NIO will accelerate its full supply chain ramp up process, with an expected production capacity of over 10000 vehicles in December and 20000 vehicles in March 2025.
According to the plan, starting from 2025, NIO will enter a new round of product cycle, with new product deliveries from Ledao and Firefly brands, and the company will enter a faster growth stage.
The above-mentioned person in charge stated that using two to three brands to face different users is a relatively successful strategy. Continuously improving NIO's brand gross profit margin is the company's goal. In October, NIO reduced its promotional expenses, which had a temporary impact on sales, but sales recovered after stable prices in November. In addition, few users choose not to buy the NIO brand because of Ledao, and overall, the company has gained greater growth.
After the listing of the NIO brand on Ledao, it will adhere to a high-end positioning and continuously improve its profitability as the main focus. The company is confident that the NIO brand's gross profit margin for the fourth quarter can increase to 15%. By 2025, NIO's overall gross profit margin for vehicles will gradually increase from 15% to 20%.
In terms of overseas markets, NIO continues to promote its global market layout. On November 28th, NIO's first store in the Middle East and North Africa market, the NIO Abu Dhabi Center, will officially open. Currently, NIO has started sales and delivery work in the local area. Starting from 2025, with the delivery of Ledao and Firefly brand products, NIO will accelerate its entry into more global markets.