Li Bin's speech to all employees on the tenth anniversary: NIO has no retreat and will not leave any retreat.

Author | Angela Li 

Editor | Qin Li 

NIO, which has been established for ten years, has become an automotive company with over 30,000 employees and has sold more than 620,000 vehicles cumulatively.

Bin Li, who is 50 years old, has many things he wants to do. NIO has also built its own extensive business map: user community, charging and battery swapping service system, mobile phones, multi-brand strategy, overseas layout, and so on.

These businesses support NIO's mid-to-high-end automotive brand positioning, but also require a continuous supply of funds. However, the industry competition has entered a white-hot period, and the capital market is becoming increasingly rational. Under the background of "difficult to earn and raise money", the development rhythm of NIO is bound to be adjusted rapidly.

"A company that can survive for 10 years must have its own reasons." Bin Li, the founder, chairman, and CEO of NIO, affirmed NIO's past achievements in an internal speech to all employees. "We account for 40% of the pure electric vehicle market above 300,000 yuan, indicating that we have indeed done the right thing."

But he also once again issued a warning to all employees that the next two to three years will be the most intense and cruel stage for the entire industry, and only a few outstanding enterprises will be able to survive.

"We are competing with the top technology company in China like Huawei, and a very powerful automotive company like BYD," Li Bin said.

Facing the fierce competitive environment, his answer is: maintain the original intention, focus on action, and simultaneously improve efficiency.

"A good idea without execution is just empty talk, and long-termism should not be an excuse for not doing a good job in the short term," Li Bin said.

He put forward clear execution goals: continuously launch competitive products, improve operational efficiency, double sales in 2025, and achieve company profitability in 2026.

Centering on these goals, Li Bin requires NIO to achieve "increase income and reduce expenditure": increasing income means selling more cars and controlling gross profit; reducing expenditure means being frugal where necessary and spending where appropriate, evaluating ROI, and the key is to make everyone have this awareness. According to 36Kr Auto, many of NIO's businesses, including R&D, are indeed undergoing strict ROI evaluations this year. Project budget applications must clearly explain the implementation plan, budget details, output time, and so on.

This is a task that NIO cannot afford to fail in the next two years. "We have no retreat, and we should not leave ourselves a retreat," Li Bin said.

After the speech to all employees, Li Bin also responded to questions about LeDao's production capacity, multi-brand strategy, and overseas expansion in the "face-to-face" question-and-answer session with employees.

Li Bin admitted that there are indeed some problems with the product launch and delivery rhythm of LeDao. It would be better if more orders were accumulated first and the listing conference was held later. Secondly, there is indeed room for improvement in the supply chain management link.

But Li Bin hopes that the sales team will not slow down, open stores according to the rhythm, maintain the brand's reputation, and actively expand customers. "The supply problem will be solved in one month, and the delivery capacity will definitely reach 20,000 in March next year."

In addition, Li Bin also responded to the company's multi-brand strategy: NIO is targeted at the market above 300,000 yuan to increase the company's gross profit; LeDao is aimed at the most competitive mainstream family market with an average price of more than 200,000+;

Firefly is positioned as a high-end compact car, just like MINI and Smart. "It's a bit more mini than Smart and a bit more smart than MINI." He revealed that Firefly basically has only one model in China, but will develop targeted local products for the global market.

If he could start a business again, Li Bin said that most of the things NIO has done will be persisted. The deployment of networks such as battery swapping, sales, and services may be more proactive, the rhythm control of the global market will be better, and the product and systematic capabilities can also be better. "But there are some things that I definitely will not do. For example, in China, I would rather set up more battery swapping stations instead of doing range-extended vehicles.

The following are the main contents of NIO CEO Li Bin's speech and employee Q&A on that day, slightly edited:

Speech to All Employees: No Retreat, and Don't Leave Yourself a Retreat

Today, NIO has done many pioneering things, from being a high-end intelligent electric vehicle brand in China, to the rechargeable, swappable, and upgradable energy supplement system, the vehicle-wide operating system, the application of high-end chips, the self-developed first 5-nanometer automotive-grade chip, as well as the 900-volt high-voltage platform, Tianxing chassis, and many other "firsts". We have indeed promoted the innovation and development of the industry in many things.

We should not be unduly humble and should recognize our achievements; but we should not deceive ourselves either. We are still far from being excellent and outstanding, and there is still a gap from the goals we set for ourselves 10 years ago.

It is very important to have a clear self-awareness. The industry environment has undergone tremendous changes in the past decade. The competitors 10 years ago are completely different from today; but our peers today are too excellent. Although we have had a 30% growth in the past three years, it is not enough.

The next two to three years will be the most intense and cruel stage for the entire industry, and only a few outstanding enterprises will be able to survive. Standing at this point in time, we need to think clearly about what should be persisted and what should be changed.

To persist is to maintain the original intention. A successful company must create value for users. We create value for users through good products based on technological innovation, services that exceed expectations, and a community that grows together. We account for 40% of the pure electric vehicle market above 300,000 yuan, indicating that we have indeed done the right thing. Our mission, vision, and values are not a problem, so we should persist.

The lessons from the past are that once we act against our values, we will soon be punished by the market. Things that are not what NIO should do will be very uncomfortable. Many areas that need improvement are precisely those where the original intention has not been well implemented and executed.

A company that can survive for 10 years must have its own reasons. Today, we should do what we believe in and say what we believe in.

Facing the complex market competition, we must have our own "soul" and "backbone", otherwise, we will be carried away by the tide. All great companies will form their own set of cores.

To change is to focus on action. We are not building a utopia, but running a business. We cannot become a company that only talks about concepts but does not deliver results.

This requires execution. When we talk about "systematic efficiency", the key is not to make repetitive mistakes, to learn from failures, and to make progress.

One of the very important things we have done this year is to sort out 15 systematic capabilities for the company, find the most basic operating units of the core business, such as each R&D project, each vehicle, each component, each store, each charging and battery swapping station, each battery, and each person.

Centering on the operating efficiency of the basic operating units, set clear operating goals, cost goals, and return on investment goals, formulate specific implementation plans, and timely review and continuously improve the operating results. This requires the management support departments to change their thinking, provide tool support and management empowerment, and establish a bottom-up self-growth ability.

To do anything, we need to return to the basic operating units, strengthen everyone's business awareness, and realize that improving efficiency and saving money for the company is saving money for yourself.

Our tasks are very clear: First, continuously launch competitive products, accurately identify user needs, fully consider market competition, and accelerate the launch of the promised technologies; second, improve operational efficiency, including cost management and control in all aspects, do a good job in demand forecasting and supply-demand matching, and have a transparent supply chain;

Third, double sales next year; fourth, achieve company profitability in 2026, that is, increase income and reduce expenditure. Increasing income means selling more cars and controlling gross profit; reducing expenditure means being frugal where necessary and spending where appropriate, evaluating ROI, and the key is to make everyone have this awareness.

These four things are the tasks that we cannot afford to fail in the next two years. Running a business is like climbing a mountain. If we keep circling in one place and waste energy, it is basically over; but when we cross this threshold, we can see a better scenery. We must cross this threshold. We have no retreat, and we should not leave ourselves a retreat.

In the automotive industry, ten years is actually very short; those century-old enterprises are companies that have experienced numerous hardships and selections. Each company has very excellent aspects worthy of our learning. At the same time, we have our own opportunities. As long as we overcome the challenges, we will definitely have opportunities.

Employee Q&A: Hope Everyone Doesn't Make the Same Mistake Twice

Question: I have been paying close attention to the delivery of LeDao recently, and there are also many external evaluations. What do you think?

Li Bin: Regarding the delivery, I will talk about two things: First, the issue of the product launch and delivery rhythm. If more orders were accumulated first and the listing conference was held later, we could achieve immediate delivery upon listing and increase the volume upon delivery. Now, I think this strategy might be correct, and we are also reflecting on it. If LeDao starts delivering at the end of November, it can reach over 10,000 in December; or if it starts delivering at the end of October, it can reach over 10,000 in November.

Second, the supply chain management issue. We can indeed do better, and there are many lessons to be learned. While improving production capacity, I hope the sales team will not slow down their work, but still open stores according to the rhythm, train Fellows, maintain the brand's reputation, increase exposure, and actively expand customers. The supply problem will be solved in one month, and the delivery capacity will definitely reach 20,000 in March next year.

Question: What are the plans and goals for the multi-brand strategy?

Li Bin: We now have three brands: NIO is positioned in the high-end market above 300,000 yuan. We hope to increase the gross profit and take gross profit operation as an important task; LeDao is aimed at the mainstream family market with an average price of more than 200,000+, which is the most competitive market and also the most challenging for our capabilities; Firefly is a high-end compact car, just like MINI and Smart. We are a bit more mini than Smart and a bit more smart than MINI.

In the global market, NIO will enter, but it will rely more on LeDao and Firefly. In the future, we need to establish the ability to efficiently, quickly, and cost-effectively launch local targeted vehicle models based on the user needs of each market. This ability still needs to be improved, and many peers like Chery have done a great job.

Question: The company has launched many vehicle models, but none of them can be said to be a "big hit". What will be our planning for vehicle models in the next step?

Li Bin: Don't be led astray. Our ET5 + ET5T and ES6 + EC6 are best-selling products in their respective markets, and they can compete with X3 + X4 and Q5.

In terms of vehicle model planning, LeDao will not have too many models, and each model will achieve a considerable sales volume. For example, the total sales of many models of BYD Song can exceed 100,000 units, and Model Y as well as Li Auto's L6 + L7 + L8 are also selling well.

NIO will still maintain product diversity. High-end brands are relatively more about uniqueness. Mercedes-Benz has more than 50 vehicle models, and BMW also has dozens of models. Each Ferrari model is customized. The key is the development efficiency, and our development efficiency can be improved.

Firefly basically has only one model in China, which is the strategy of a high-end compact car. Targeted local product development will be carried out for the global market.

Question: Europe has imposed tariffs on Chinese electric vehicles, and the United States and its allies have also imposed restrictions on China in terms of chips. Will these uncertainties have an impact on the company's overseas expansion plan?

Li Bin: There will definitely be an impact. For example, the price of our vehicles in Europe will be higher. In terms of direction, we will firmly move towards the global market, but we will make targeted arrangements in the specific market entry time and products. Europe is not simply the concept of the European Union. For example, Norway, Switzerland, and the United Kingdom do not have this problem. The United States is more complex and requires a long-term plan.

In other regions of the world, we will actively enter in general. Li Hong just went to Azerbaijan not long ago. We are the official vehicle of COP29 (United Nations Climate Change Conference), and they purchased 140 ET7s from us. In Central Asia, many users imported the vehicles from China themselves. The core is to make targeted plans for each target market. If it is necessary to set up local manufacturing in some places, we will also consider it at the appropriate time. Don't be stubborn and don't have illusions.

Question: After entering the final stage of intelligent electric vehicles, the progress of competitors is getting faster and faster. How does Brother Bin view the development trend of the industry? What advantages and countermeasures can enable us to ultimately survive?

Li Bin: Yes, we are competing with the top technology company in China like Huawei and a very powerful automotive company like BYD. What should we do? In fact, it is as I mentioned before, maintaining the original intention, focusing on action, and hoping that everyone can make adjustments in their mentality.

Before 2022, we generally had some brand superiority; but today, the competitors are completely different. We must not live in the mood of 2021 or even the first half of 2022.

We need to make an uphill attack, build strong fortifications, and fight a steady battle, that is, do hard and tiring work, put our feet on the ground, roll up our sleeves, and do it steadily. Don't have illusions. I hope everyone can change their inertia, especially the management team. There are many companies in China worth learning from. For example, Luxshare looks at costs to the fourth decimal place because multiplying its scale by 100 million is to the fourth decimal place.

Question: If you could go back 10 years and start over, what things would you persist in and what things would you improve?

Li Bin: Most things will be persisted. Some things may be more proactive, such as the deployment of battery swapping stations, as well as the deployment of sales and service networks. In terms of the global market, the rhythm will be better controlled.

In terms of products, we can indeed do a better job in understanding the target users, what products they really need, and what functions they need. There are many lessons in this.

In the overall operating system, including the construction of system capabilities, it should have been started three or four years earlier and been done more resolutely in the 2021 cycle. These things should be able to be done better. If I have higher requirements for myself or make many adjustments more timely, it should be achievable.

But there are some things that I definitely will not do. For example, in China, I would rather set up more battery swapping stations instead of doing range-extended vehicles.

Question: How do you view the gains and losses of the company in the past 10 years? What achievements have been made and what lessons have been learned?

Li Bin: The "gains" have been mentioned before. Let's mainly talk about the "losses". There is one thing we must pay special attention to, and that is the organizational inertia. Suppose you are driving. How can you drive well? Shouldn't you be able to sense and predict in advance, and take actions in advance, accelerate when you should accelerate, and brake when you should brake.

Some things that seem wrong must be corrected in time. We now also have some system capabilities, such as demand forecasting and supply-demand matching, and we must do them particularly well. There are many lessons. We indeed have many areas that need improvement. I hope everyone doesn't make the same mistake twice.

Question: Now many people are teaching you how to be a CEO. What do you think of this?

Li Bin: Many people are really for our own good, especially our users. We should listen carefully to their suggestions. For those reasonable and high-priority suggestions, we must be realistic and