NIO founder William Li said in an internal speech on September 8 that the company will focus on its core business, the premium market, and core markets over the next three years, and confirmed the launch of an important new model in 2027. Onvo will release a strategic new product, while Firefly currently has no plan for a second vehicle. NIO's second-quarter revenue was RMB 32.14 billion, up 69.1% year over year, with vehicle margin at 18.5% and a GAAP net loss of RMB 528 million; revenue from services and community business in the first half was RMB 5.8 billion. Li said embodied AI will be pursued long term as a strategic investment and is not listed as a core business.
[Main text] NIO founder, chairman and CEO William Li, in an internal address to all employees on the afternoon of September 8, reaffirmed that the company will focus on its core business, the premium market, and core markets over the next three years. According to Leiphone, he also disclosed that an important new model will be launched next year, but did not reveal the specific brand or launch timing. The remarks came as competition in China's auto market continued to heat up and NIO's own operating metrics showed marginal improvement.
The three-year focus: core business, premium, and core markets
Li described the current stage of China's auto industry as 'the most brutal stage of the finals,' and said that even as NIO itself continues to grow, competitive pressure at the industry level will spill over to the company. Based on this judgment, he summed up the core tasks for the next three years as focusing on the core business, the premium market, and core markets.
This narrowing logic has data support. According to Li in the internal speech, NIO currently has a slightly more than 2% share of China's auto market, and about 4% to 5% in the mid-to-high-end segment. He stressed that there is still huge room for growth in the core business—in other words, the company chooses to deepen its existing positioning rather than disperse resources at a stage when its share is still low.
Product cadence: two key milestones in 2027
On the product side, Li made clear that NIO will launch an important new model next year (2027), but did not disclose the model, brand, or specific date in the speech. He said the company has improved its product launch cadence and will no longer launch multiple products in rapid succession. Previously, on the September 1 second-quarter earnings call, Li said the sub-brand Onvo would launch a strategically important new product in 2027 to expand its lineup. In the internal speech, he added that the company reviewed the definition and planning of its second-generation products, and is clearer about its choices of target markets and segments.
For the sub-brand Firefly, Li said there are no plans to launch a second model; the brand will continue to update existing models and release limited editions.
The boundaries of embodied AI and smart-driving investment
As automakers rush into embodied intelligence, Li said NIO will participate in the field mainly through strategic investments for a relatively long period, and does not list embodied AI as a core business. This is consistent with arrangements previously disclosed by the company: on its second-quarter earnings call, NIO said it would support Ren Shaoqing's startup in physical AI as a strategic shareholder, while Ren Shaoqing continues as NIO's smart driving head, responsible for technology direction and long-term strategy.
At the same time, Li said the company will increase incentive investment in key smart-driving talent and computing power investment to maintain technological competitiveness.
Services and community: the financial substance of the second growth curve
Beyond vehicle sales, Li views the services and community business as an important part of the second growth curve, underpinned by a growing owner base. The figures he gave: the business generated revenue of RMB 5.8 billion (about $856 million) in the first half of this year, after surpassing RMB 10 billion for the first time in 2025, and has been profitable for multiple consecutive quarters. Li said profit from the services and community business is enough to cover investment in battery charging and swapping infrastructure. Energy operations, driver-assistance subscriptions, and the NIO Life online store also form part of this growth opportunity.
The gap between operating improvement and capital market perception
Financial data provide some support for the above strategy, but the company has not yet achieved net profit under GAAP. Second-quarter results released on September 1 showed NIO's revenue rose 69.1% year over year to RMB 32.14 billion, with a vehicle margin of 18.5%; adjusted operating profit was RMB 206.9 million, positive for the third consecutive quarter on that basis, but the GAAP net loss still reached RMB 528 million.
At a media briefing on September 4, Li said the capital markets have not fully recognized the value of NIO's AI and energy businesses, and the company ultimately needs to convince investors through operating results. He noted that NIO's market value was at a very high level in 2021, but the company is healthier now than it was then.
For observers of overseas expansion, the information from this internal speech is concentrated in two areas: first, the delineation of resource boundaries—namely, no multi-brand expansion within three years and not making embodied AI a main business; second, the cadence arrangement—namely the 2027 new-product milestone and strategic products from sub-brands. Given expectations that competitive pressure from China's market will spill over, the pace of overseas expansion and localized factory construction will be an important dimension for observing the effectiveness of this focus strategy.
