ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Electric cars in China

Chinese Tesla rival Nio to double R&D spending to $770m

Electric car maker strengthens product development as competition heats up

Nio, often dubbed China's Tesla, plans to commercialize its long-range battery by the end of 2022. (Photo by Takashi Kawakami)

GUANGZHOU -- Chinese electric vehicle startup Nio is set to double its research and development expenditure this year from a year earlier, as industry players pour more money into their ventures to compete in the global EV race.

The U.S.-listed company revealed at an earnings teleconference Tuesday that it will spend around 5 billion yuan ($772 million) this year through December, which is also its fiscal year.

Nio had announced in January that it would commercialize by the last quarter of 2022 its latest battery which, when fully charged, has a range of over 1,000 kilometers. The company is likely to use its R&D budget on developing related technologies.

"We will increase investment in research and development and promote mass production of core technologies and new models," said Chief Executive William Li.

The company cut R&D expenditure for fiscal 2020 to 2.4 billion yuan, down 40% from a year earlier.

Nio also said that recent shortages in semiconductors and batteries are limiting its EV production capacity to 7,500 vehicles a month. "The supply [for the components] will catch up by July," Li said, adding that the startup plans to ramp up annual capacity to 150,000 to 300,000 vehicles by year-end.

Nio posted sales of 16.2 billion yuan for fiscal year 2020, or 2.1 times more than a year earlier. It recorded a net loss of 5.3 billion yuan, against a net loss of 11.2 billion yuan in 2019. It delivered 43,728 cars in 2020, double the amount a year ago, a development that helped to reduce its deficit.

Nio, often dubbed China's Tesla, was listed on the New York Stock Exchange in September 2018.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more