Author |Chai Xuchen.
In the past 2023, Li Bin, chairman of NIO, seems to have once again been on a roller coaster, and it is difficult to be safe. At the beginning of the new year, he issued an all-staff letter to NIO, summarizing and reflecting on the old year, and setting goals for the new year.
For NIO, 2023 has indeed been extraordinary. 5 new cars were delivered in six months, some of which hit the highlight of monthly sales of more than 20,000 units, and there was the loss of sales declineNIO, which is heavily betting on ecology and technology, is striding forward, but it is sad in the face of a large loss in the financial report.
In the end, in 2023, NIO handed in the paper with a total score of 160,000 vehicles, which is not high-ranked, but temporarily leads the high-end pure electric market of 300,000 yuan+. Li Bin believes that such a comprehensive performance did not meet expectations, there are many lessons that need to be summarized and reflected, and there are too many organizational capabilities that need to be improved as soon as possible.
The intelligent electric vehicle industry has a large volume and a long industrial chain, and a 1% gap in system capacity means a 10% gap in sales and profitability. System capability is the capability we need to improve the most, and the new model launch in 2024 has fewer tasks, which is a good time window for us to improve system capability." Li Bin said.
It can be said that in the top-level planning of the company's structure and in the systematic capacity building, Wei Xiaoli and the three are standing on the same line, and they all dream of becoming giants who stay in the endgame.
Li Bin clearly knows that the next two years will be the most important stage of the transformation period of the automotive industry, and the intensity of competition will be beyond imagination. "We will face stronger opponents, better products, more fierce battles, and more complex atmospheres. Every colleague must be mentally prepared, give up illusions, and face challenges head-on."
In 2024, it is Li Bin's desperate bet, and it is a battle that NIO cannot afford to lose.
The following is the full text of the internal letter:
Dear colleagues, 2024 is here, and I wish you all a Happy New Year!
In 2023, in a macro environment full of uncertainties, the competition in the smart electric vehicle industry has entered the most intense stage of the qualifying round. The past year has been another challenging and unforgettable year for NIO.
Our overall performance did not meet the expected goals, there are many lessons to be summarized and reflected, and there are too many organizational capabilities that need to be improved as soon as possible. We have also proved our enterprising spirit and tenacity in the face of adversity with our own practical actions, withstood the test, and laid a solid foundation for the next stage of development.
In 2023, we delivered five new models in six months, fully demonstrating NIO's ability and efficiency in product development and delivery. At the NIO IN Innovation and Technology Day, we gave a comprehensive introduction to 12 full-stack technology layouts for the first time.
The global pilot assisted NOP+ has accumulated steadily, entering the urban area from high speed, and the evolution speed of application group intelligence capabilities is leading the industry. User satisfaction with the in-cabin experience continues to improve, and the first flagship mobile phone, NIO Phone, is launched, leading the innovation direction of driver connectivity. The world's leading technologies such as the Shenji intelligent driving chip, the SkyOS operating system, the 900V global high-voltage platform, and the Skyride intelligent chassis unveiled together with the global intelligent electric vehicle technology flagship ET9 have made more people understand that technological innovation is the background color of NIO.
Deliveries in FY2023 will be 160,000 units, up 30% year-on-year7%, and continues to rank first in the electric vehicle market with an average transaction price of more than 300,000 yuan in China, with a market share of more than 40%. NIO's brand image in the high-end market has been recognized by more and more people.
In terms of sales capacity construction, the investment in recent months has begun to play a role, laying the foundation for coping with market competition in 2024. We have efficiently completed the "Thousands of Stations, Thousands of Piles" plan and fulfilled our commitment to users.
The daily battery rental service was opened, and the 150kWh battery overcame difficulties and passed the announcement test, and the service system of "rechargeable, replaceable and upgradeable" was more perfect. In November, we signed a battery swap cooperation agreement with outstanding peers such as Changan and Geely, marking a historic step forward in the openness and sharing of NIO's battery swap network. Charging and swapping services are not only our service advantages, but also become an important long-term business growth point.
In the face of the cooling capital market, we have successfully introduced strategic investments to replenish capital and resources for the next stage of development, and NIO's technology, strategy and development prospects have been recognized by long-term investors.
Thank you all for your hard work!Together, we have proven our determination to stay true to our original intentions in the face of pressure, and our ability to execute to face problems and solve problems.
In the past few years, the share of plug-in hybrid, extended range, entry-level and mass-market pure electric products has increased rapidly, and starting in 2024, with the accelerated popularization of charging and swapping facilities and the change of user consumption psychology, the high-end pure electric market where the NIO brand is located will usher in an inflection point of explosive growth.
In the second half of the year, we will usher in a second brand for the mass market, which will bring new growth points to the company while serving more users. Our continuous investment and in-depth layout in technology, products, services, and communities give us the confidence to participate in the next stage of competition.
Dear colleagues, the next two years will be the most important stage of the transformation period of the automotive industry, and the intensity of competition will be beyond imagination. We will face more powerful competitors, more and more excellent products, more fierce battles, more complex atmosphere, and a macro environment full of uncertainty.
Every colleague must be mentally prepared, give up illusions, and face challenges head-on." Stress and challenge are always the best opportunities for great companies to improve their capabilities, and I look forward to working with me in the coming year to do the following: Prioritize things and focus on high priorities.
The company's three high priorities are: ensuring long-term investment in core and key technologies, ensuring technology and product leadership, and delivering on time and quality;Ensure that sales and service capabilities can cope with fierce market competition, and sales can be converted into sales as soon as possibleEnsure that the research and development of 9 core products of 3 brands is carried out on schedule.
The company's resources are limited, each department and every colleague should make full use of VAU's working methods, clarify work ideas and work priorities, do a good job of horizontal and vertical alignment, ensure that the output of the department and their own work is consistent with the company's high priorities, improve the company's overall operational efficiency, and establish system capabilities at all levels.
After 9 years of development, the business framework of our product technology, service and community has basically taken shape, and the organizational structure of supporting multi-brand, multi-region and multi-platform has been initially established, but our system capability is still far from our goal. The intelligent electric vehicle industry has a large volume and a long industrial chain, and a 1% gap in system capacity means a 10% gap in sales and profitability.
System capability is the capability we need to improve the most, and the new model launch in 2024 has fewer tasks, which is a good time window for us to improve system capability."
The construction of system capacity requires the active participation and joint efforts of all colleagues in the company, and each department must clarify the essential logic and key success factors of the business, set clear goals, use resources to the cutting edge, formulate specific implementation plans, adjust the organization, people and input, and business focus according to market changes, benchmark and learn from the excellent practices of peers, and timely review and continuous improvement of delivery results.
Please remind each other that NIO does not lack theoretical concepts, and that it is necessary to put an end to generalized empty talk in daily work, implement the clear direction, focus on action, and fight in a daze. Strengthen cost awareness and cost control capabilities.
In the past few years, the company's business boundaries have expanded rapidly, and the system capabilities have not been perfected, and many projects have caused a waste of resources due to in-depth business understanding and poor management. We resolutely invest in product technology research and development and service infrastructure, but resolute investment requires high cost awareness and cost control capabilities.
The company's resources are limited, we are still suffering losses from R&D and infrastructure investment, and we need to continuously improve our financial performance to support the company's sustainable development, and we have the responsibility and obligation to make good use of every penny of our investors and shareholders.
R&D, chain, quality, manufacturing, sales and service, management and support, every link and every expenditure must have the awareness of calculating and improving the return on investment, and must have the ability to continuously optimize and save costs and expenses.
In 2024, we must resolutely avoid ineffective and inefficient investment, resolutely save every penny that does not create value for users and the company, save every kilowatt-hour of electricity that is not needed, save every unwanted document printing, do not waste every click and inquiry, and do not waste every opportunity for product and service improvement brought by user feedback.
Excellent companies can achieve market success with the best resource investment, and we must set the highest goal of fine management in the industry and resolutely implement it in place. Our journey is a marathon on a muddy road, and if we keep running every step well, we will gradually lead the way.
In 2024, let us all focus on system capacity building, face challenges, move forward firmly, and power up together!
Li Bin.