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Rumor Has It That the Sedan Project Has Been Called Off, NIO Denies
COVID-19 and China
NIO HOUSE. PHOTO: Credit to NIO

On April 26, rumors circulated that NIO's first sedan project, ET, had been stopped. However, NIO responded that "this report is not true and the product planning and development of the sedan series is still in progress." We will release an official statement when appropriate, the Chinese car-maker announced.

NIO debuted the ET Preview version of its sedan series at its booth during Automobile Shanghai this year.

This model adopts the body form of the four-door sedan. However, its performance index was not introduced.

ET Preview's mass production model is expected to be officially launched on NIO Day in 2019, according to several media who attended Automobile Shanghai. Nevertheless, NIO never mentioned a specific launch date and the delivery of its sedan.

The company released two pure electric SUV products, the ES8 and the ES6, on NIO Day in 2017 and 2018 respectively. Until now, the total delivery volume reached 15,000, outnumbering new vehicle manufacturers. According to NIO's previous plan, a new model will be launched every year from 2018 to 2022, including its Coupe model, ET5, Sedan model, ET3, MPV model, EF9, and compact SUV model, ES3. 

NIO announced in its stock exchange filing that it generated USD 720 million in revenue last year but ultimately lost USD 1.4 billion, approximately doubling the company’s losses from 2017. The large losses will have a significant impact on the development of new models, as well as the mass production and delivery of models already on the market.

In fact, for current new car manufacturers, the new car planning choice is crucial. As for whether there will be new cars on NIO Day this year, and several models are developing, NIO replied to the media that it is still not the time for specific communication.

Also, according to QI Chacha (企查查), Shanghai NIO Co., Ltd. changed its technical and commercial information on April 26, and its registered capital increased by 25% from USD 2 billion to USD 2.5 billion.

In general, the increase of registered capital has the following effects on enterprises:

1) After the rise of registered capital, the operating money of enterprises becomes abundant, which has a positive impact on the operation and development of enterprises.

2) Increase in the registered capital of the company will increase business and can be appropriate to reduce the distribution of shareholder income.

3) In the event of a capital increase, the shareholder ratio adjusts to some extent.

4) For partners, the higher the registered capital, the higher the credit will be.

5) After the capital increase, the credit degree of the enterprise will increase, which will bring more business and improve the income of the enterprise.

However, NIO has not announced specific reasons for the increase in registered capital.

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