China Auto Daily丨NIO Projects Q4 2025 Gross Margin Surpassing 20%

NIO Projects Q4 Gross Margin Surpassing 20%  

At its Q1 2025 earnings call on June 3, NIO CEO William Li forecasted monthly sales of 25,000 units for its core brand in Q4 2025—a 20% increase over 2024’s steady-state volume. The company expects gross margins to exceed 20%, driven by economies of scale and battery cost reductions. To achieve breakeven, NIO will cap R&D expenses at RMB 2-2.5 billion (USD 278–347 million), representing a 20-25% YoY efficiency gain, while keeping SG&A costs at approximately 10% of revenue through optimized sales channel investments.  

XPeng, Huawei Tease Strategic Alliance Announcement  

XPeng Motors and Huawei QIANKUN Intelligent Automotive Solutions hinted at a strategic partnership via separate Weibo posts on June 4, confirming a joint announcement scheduled for June 5 night. The collaboration follows XPeng Chairman He Xiaopeng’s February meeting with Huawei founder Ren Zhengfei, signaling potential integration of Huawei’s ADS technology into XPeng’s next-gen EV platforms. Industry analysts speculate the tie-up could accelerate XPeng’s urban NOA deployment in Europe.  

Xiaomi’s Lei Jun: EV Unit to Turn Profit in H2 2025  

Xiaomi founder Lei Jun dismissed rumors of a RMB 235,900 (USD 32,800) starting price for the YU7 SUV during a June 3 investor meeting, stating final pricing will be confirmed "one to two days before its July launch." He revealed Xiaomi’s five-year robotics R&D program is now being piloted in its car factories, with in-house automotive chips nearing commercialization. Lei projected the EV division will achieve profitability in late 2025, leveraging vertical integration and the SU7 sedan’s 23.2% Q1 gross margin.  

*(Exchange rate: RMB 7.2 = USD 1)*