NIO CEO William Li warned that China’s auto industry has entered its most brutal final stage. He forecasts a 15% to 20% decline in domestic retail sales for 2026. Li dismissed hopes for a near-term market rebound at the China Auto Chongqing Summit.
Industry-wide sales fell 19.5% during the first five months of the year. NIO’s Hong Kong-listed shares fell 1% following the announcement.
Li maintained NIO’s sales growth target of 40% to 50% for 2026. NIO vehicle deliveries surged 68.7% in the first five months of the year.
Li described the shift toward electric vehicles as an irreversible trend. The company uses a multi-brand strategy to gain market share during the broader slowdown.