NIO to increase number of NIO House, NIO Space to 200 by end-2020

Shanghai (Gasgoo)-NIO, Tesla's China wannabe, aims to beef up the cumulative number of its sales and service outlets—NIO House and NIO Space—to around 200 by the end of 2020, Wei Jian, NIO's Vice President of User Operations, said on January 16.

Mr. Wei said then NIO had already set up 22 NIO Houses and 55 NIO Spaces in 57 cities in China. The number is now further increased as a local media outlet said the startup would open up another seven NIO Spaces on January 18.

(Photo source: NIO)

The Shanghai-based EV manufacturer is famous for its thoughtful services. Under the slogan “a space for NIO’s users and friends, a joyful lifestyle beyond the car”, the startup opens NIO House throughout China in cities' prime lots with huge amount of money involved. More than a room to display the company's products, a typical NIO House is simultaneously a coffee shop open only for its users, a day care center, a library and a meeting room and places for other social activities. NIO thinks it will build a deeper relationship with its customers.

By contrast, NIO Space covers smaller area and involves fewer construction cost. According to Wei, a NIO Space commonly occupies fewer than 200 square meters with an average building cost of under RMB1 million. It mainly serves as a showroom for sale that facilitates users who are interested in NIO's products while living in cities without NIO Houses.

Some NIO Spaces are wholly funded and operated by the company itself, and some are co-built with partners boasting ample automotive industry experience, said Mr. We.

NIO delivered 3,170 vehicles in December 2019, representing a robust 25.4% month-over-month growth. The growth should be attributable to multiple reasons. “Through favorable word of mouth and referrals, our existing users remain a steady and relevant driver of new orders. Our sales also benefited from the expansion of our sales network through the continued launch of more efficient NIO Spaces,” said William Bin Li, founder, chairman and CEO of NIO.

The vice president also pointed out that the higher efficiency, lower rent and fewer staff cost for operating NIO Spaces won't make the automaker downplay the development of NIO Space, which are still very critical to NIO's branding, business model and supportive user base in the future.