Chinese EV manufacturer Nio has announced an internal restructuring aimed at achieving profitability by the fourth quarter of 2025. The company has introduced a management system focused on “core business units” (CBUs) to enhance efficiency and reduce costs.

Under the new CBU system, Nio will evaluate all projects based on their return on investment (ROI). Teams must justify their expenditures by analyzing both short- and long-term outcomes, including costs related to labor, testing, and deployment. Projects identified as unprofitable will be terminated.

William Li, Nio’s founder, chairman, and CEO, discussed the changes during a closed-door media session. He noted that the IT division has already adopted the new system, leading to cost savings. Li also mentioned the discontinuation of temporary promotional initiatives, which he described as financially inefficient.

Lihong Qin, president and co-founder, emphasized the importance of leadership alignment in implementing these measures.

Nio has faced mounting pressure amid a slowdown in China’s EV sector and intensifying price competition. The push toward profitability marks a shift in tone for the company, which previously focused heavily on brand-building and R&D investment.

Recent Nio developments