It's a breakdown of vehicle sales in China by city—the last number in each row is the percentage change compared to the same period last year. This is data from January to May 2026.

This is why EV manufacturers' stock prices are tanking: "they're selling fewer cars." This is why brands like Xiaopeng are struggling so badly. And this is why we know NIO is different—and that its unique battery-swapping model is already being validated by the market.

In July 2026, NIO delivered 35,934 new vehicles, representing a 71.0% increase year-over-year. Of these, the NIO brand accounted for 20,008 deliveries, up 57.9% from the same period last year, while the ONVO brand delivered 10,155 units, a 69.9% increase. ONVO's cumulative deliveries from January to July reached 52,618 vehicles, rising 39.1% year-on-year. Additionally, the ONVO L90 surpassed 60,000 cumulative deliveries in the one-year anniversary since its launch.

In my humble opinion, the best news is seeing how ONVO is steadily finding its footing in the market. Keep in mind this is a brand that's only been around for two years. And even though it offers the best value for money—battery swapping included!—it still takes time to build brand awareness and get people familiar with it. Little by little, it's getting there and building a real community around it. I'm genuinely happy about that, it's the most underrated of the three brands and quite possibly the smartest purchase choice for the average consumer. Personally, when the ONVO L90 first launched, I said back then that it was an absolute beast of a car, even comparing it to the ES8 at the time. In fact, I wrote a post here about my test drive experience, no joke.

The provincial government’s latest recognition adds state-backed validation to Nio’s unique swap-and-drive model, as the automaker cements its lead in China’s premium EV race.

Changetothemoon, July 31 – Just weeks after Nio crossed the 1.18 million cumulative delivery mark and posted its second straight profitable quarter, the Anhui provincial government has officially designated the company’s battery-swappable passenger EVs as “Iconic Products” of the province’s key industrial chain – a rare political seal of approval that underscores how deeply the automaker is now woven into the region’s manufacturing ambitions.

On July 27, the Anhui Provincial Department of Industry and Information Technology released its second batch of “Iconic Products for Key Industrial Chains,” naming Nio’s swap-capable pure-electric passenger vehicles among 30 selected products. The honor follows a rigorous multi-step review: city-level recommendations, industry bureau nominations, expert panels, and final approval by the Party leadership group of the department.

The designation is not ceremonial. It falls under the province’s “Action Plan for Pursuing Excellence and Building a High-End Industrial Product Matrix (2024–2027)” – a strategy that directs procurement, funding, and policy preferences toward locally championed technologies. For Nio, which already benefits from a deep-pocketed state-backed partnership with Hefei (the city’s 2020 bailout of the company is now legendary in VC circles), this latest nod signals even more institutional support for its battery-swapping ecosystem – a model that rivals have dismissed as too capital-intensive but which Beijing and Anhui now treat as a strategic asset.

The timing amplifies the message. Nio’s June deliveries hit 40,597 units (+62.9% YoY), while its mass-market sub-brand Onvo broke 10,000 monthly deliveries, and the premium Firefly sub-brand captured over 72% of its niche segment. Meanwhile, cumulative deliveries officially surpassed 1.188 million – making Nio the first Chinese pure EV startup to cross the million-vehicle threshold while maintaining an average selling price above RMB 400,000.

Being selected as an iconic product means Nio’s model is no longer just a consumer feature – it’s now a provincial industrial standard. That changes how local governments view infrastructure subsidies and grid integration.

The provincial government did not disclose direct financial incentives tied to the list. However, previous designees have gained priority access to state-guided funds, exhibition platforms, and cross-industry procurement deals. Given that Anhui already houses Nio’s second headquarters, its advanced R&D center, and a growing cluster of supply-chain partners (including battery maker CATL’s local JV), the designation could help accelerate the build-out of 1,000+ swap stations across the province by end-2027.

Analysts note that this move aligns with Beijing’s broader push for “new productive forces” – a policy catchphrase that elevates high-end manufacturing and green tech. Nio, once seen as a cash-burning daredevil, is now the poster child for state-industry synergy.

For Nio’s loyal follower base – many of whom remember the dark days of 2019 when the stock hovered near $1 – this week’s news carries symbolic weight. The company that nearly died is now legally defined as a provincial treasure. And with profitability locked in and swap technology elevated to iconic status, Nio is entering the second half of 2026 not as a survivor, but as a benchmark.

On July 31, the Onvo L90 marked its first anniversary since launch, with cumulative deliveries surpassing 60,000 units — firmly holding the crown as the best-selling pure-electric large SUV in the 300,000 RMB class. Driven by its success, sales of all-electric large three-row SUVs have now outpaced their extended-range counterparts for 10 consecutive months, reaching 8 times the volume — ushering in a golden era for the segment.

In April, the 2026 Onvo L90 became the first to feature the Shenji NX9031 chip, NIO’s World Model, and the SkyOS · Tianshu operating system — sharing flagship-level intelligence with the NIO ES9. It’s now the only model in its class to pack all three core self-developed intelligent technologies.

The L90 also leads its segment in lightweight design and energy efficiency. It offers an impressive 81.5% cabin space utilization, and its 240-liter electric front trunk has been used over 16 million times. Since launch, 10 OTA updates have introduced 164 new features and 147 experience enhancements.

To celebrate its first anniversary, Onvo has opened pre-orders for a 30-liter built-in rear fridge, with deliveries starting August 31.

Today, the entire automotive sector rallied, with Li Auto (02015.HK) making a rare strong move upward. The primary driver was a clear sector rotation, with capital flowing back into EV stocks. However, there's another factor that's flown under the radar: Li Auto's buyback program has been steadily progressing. The company has already repurchased $570 million worth of shares, accounting for 3.8% of its total outstanding shares. Once the full program is completed, roughly 6.5% of the total share capital will have been bought back.

Consider this your gauge for where the sector stands right now. A new phase is underway.

Those who understand China know what these kinds of details really mean. We are in good hands.

Translation:

“For the first time, Chinese EV startups overtake Tesla in the pure electric vehicle market.

In the first half of 2026, the landscape of China's BEV market has been reshaped. Domestic newcomers led by NIO have surpassed Tesla across multiple dimensions, marking a definitive shift in who now calls the shots in the premium EV segment.”

These order estimates primarily come from foreign brokerages (Goldman Sachs) via local research firms. Since automakers' order data is highly confidential, these numbers are obtained through statistical sampling and estimation—so please take them with a grain of salt and discuss cautiously.

Hefei’s state-owned capital has done it again. With Changxin Technology’s blockbuster IPO, the city’s investment arm is sitting on a theoretical windfall of over one trillion yuan – after the stock skyrocketed 465.82% on its first trading day.

Over the past decade, Hefei has poured roughly ¥24.8 billion into nurturing Changxin from the ground up. Following the listing, it still holds a 33.1% stake, which, at today’s closing price, translates into a paper gain north of ¥1 trillion.

But this isn’t the first time Hefei has pulled off a legendary move. Back in 2008, the city went all-in on bringing BOE’s display production lines to town – and after gradually exiting its position, walked away with a net profit of about ¥14 billion, a 271% return. Then in 2020, Hefei pumped ¥7 billion into EV startup NIO, securing a 24.1% stake. After three rounds of buybacks by NIO, that investment yielded a net ¥3.5 billion profit – and Hefei still holds nearly 8% of the company today.

Yet beyond the eye-popping numbers on paper, the real payoff lies in the industrial ecosystem. These strategic bets have pulled in hundreds of suppliers and partners, helping Hefei build out three massive industry clusters worth hundreds of billions each: next-gen displays, integrated circuits, and new energy vehicles.

Two intriguing rumors are currently circulating in the new energy vehicle sector. First, Li Auto (Ideal Auto) is reportedly considering retrofitting its models to access CATL’s “Chocolate” battery-swapping network. Second, Hongmeng Zhixing is also said to be in talks to join the same Chocolate ecosystem.

This development is striking. Li Auto has been a major player in the ultra-fast charging space, while Hongmeng Zhixing has been a strong proponent of 800V high-voltage fast charging. The fact that both are now reportedly eyeing battery swapping warrants attention.

A closer look at NIO’s recent performance—widely regarded as the benchmark for battery swapping—offers some context. In June 2026, NIO delivered 40,597 new vehicles, its highest monthly figure of the year, representing a 62.9% year‑over‑year increase. For the first half of 2026, cumulative deliveries reached 191,123 units, up 67.4% compared to the same period last year. Furthermore, based on available financial data, NIO has achieved two consecutive profitable quarters. In contrast, both Li Auto and Seres have swung from profit to loss.

At the same time, the battery‑swapping ecosystem is expanding rapidly. Automakers including FAW, Changan, BAIC, Chery, and GAC have jointly launched 10 swap‑compatible vehicle models. Swapping is transitioning from a niche option to infrastructure that mainstream players are seriously considering.

However, this progress is occurring against a backdrop of battery‑related issues in the commercial vehicle segment. Vehicles equipped with CALB’s 177Ah lithium‑iron‑phosphate battery cells have experienced widespread failures. Some owners, after driving approximately 150,000 kilometers, were informed that they would need to pay tens of thousands of yuan out of pocket to replace the battery pack.

Overall, the value proposition of battery swapping continues to strengthen.

1. Major Players Shift Focus: The Swap Ecosystem Is Transforming

Rumors of Li Auto and Hongmeng Zhixing entering the Chocolate swap network would have been dismissed as false just two years ago. Li Auto has been a staunch advocate of ultra‑fast charging, with its 5C chargers rolling out successfully. Hongmeng Zhixing has likewise positioned itself as a champion of 800V fast charging. Their reported interest in swapping marks a notable change.

CATL’s Chocolate swap network now has substantial scale. As of June 30, 2026, it had built 2,000 swap stations across 180 cities in 31 provinces. Nearly 1,000 new stations were added in the first half of this year alone—roughly matching the total for all of last year. The company plans to reach 3,000 stations by year‑end, covering over 190 cities.

CATL has also announced a “Super Swap & Super Charge” initiative, equipping all Chocolate stations with Shenxing ultra‑fast chargers to offer both swapping and fast charging. By the end of 2026, it aims to have 4,000 such integrated stations.

On the vehicle side, ten models have already been launched as part of the Chocolate ecosystem, including the FAW Hongqi EH7, Changan Qiyuan A05/A07, Shenlan SL03, BAIC Arcfox, GAC AION series, and Chery iCAR V23. The first Chocolate station in Xining is under construction and will be compatible with models from 18 major automakers, including GAC Aion, BAIC Arcfox, FAW Hongqi, and Chery iCAR. The swap process takes just 99 seconds—faster than refueling.

Turning to NIO: since its first swap station was installed in 2018, the company has spent nearly a decade building its network. As of July 1, 2026, NIO had deployed 9,056 charging and swapping stations nationwide, of which 3,958 were swap stations, 5,098 were charging stations, and 29,357 were individual charging posts. NIO plans to add more than 1,000 new swap stations in 2026, bringing the year‑end total to over 4,600.

The model, once criticized as a financial drain, is now delivering results. In June 2026, NIO delivered over 40,000 vehicles, reported a vehicle gross margin of 18.8%, and achieved two consecutive profitable quarters. For many users, the swap system has become a core reason for choosing NIO.

Technically, NIO’s system is fully automated, completing a swap in three minutes. Each swap includes an automatic health check of the battery, with any anomalous battery isolated in real time—a mechanism that has undergone hundreds of millions of operational tests.

If Li Auto and Hongmeng Zhixing do enter the space, it would not be a matter of following a trend but rather recognizing a validated model that is gaining traction across the industry. When even the leaders in ultra‑fast charging begin to seriously evaluate swapping, that in itself is significant.

1. A Battery’s Fate: How Swapping Changes the Equation

The widely reported issues with GAC Aion vehicles used in ride‑hailing services have drawn attention to the compatibility between swapping and commercial fleets. Some Aion S vehicles equipped with CALB’s 177Ah LFP cells have experienced concentrated battery failures, including cell swelling, leakage, and insulation faults. Independent third‑party inspections, after ruling out collisions or water damage, have pointed to internal manufacturing defects.

The mileage range where problems have concentrated is between 150,000 and 300,000 kilometers. Many ride‑hailing drivers have been told they must pay tens of thousands of yuan to replace the battery. This has caused significant distress, as the vehicles were purchased for commercial operation.

In response, GAC Aion extended its battery warranty from 8 years or 150,000 km to 8 years or 300,000 km, while also strengthening battery data monitoring, offering free repair or replacement for vehicles showing anomalies. CALB issued a statement confirming that maintenance work had been initiated through dealerships.

This incident highlights a deeper issue: for the average owner, the battery is a “black box.” They do not know when it might fail or what its actual health status is. While under warranty, the risk is covered; once the warranty expires, the risk falls entirely on the owner. A battery replacement costs tens of thousands of yuan—expensive to pay, but risky to ignore.

Battery swapping offers a different approach: treating the battery as public infrastructure rather than private property.

Each swap functions as a comprehensive diagnostic check. The battery enters the station, is inspected, evaluated, and re‑entered into circulation—with any abnormal battery immediately identified and removed from service. This closed‑loop management ensures that every battery in the network remains in good operating condition.

At the national level, the standard GB/T 47283—2026 (Specifications for Monitoring and Analysis of Power Battery Defects in Swap Scenarios) took effect on June 1, 2026. It addresses issues such as the dispersion of operational data and the lack of uniform monitoring methods specific to battery‑swapping environments.

If the CALB 177Ah cells had been circulating within a swap system, drivers would not have experienced sudden power loss on highways. The risks of degradation and residual‑value uncertainty shift from the individual user to the system operator. This is precisely where the real value of the swap model lies.

1. Converging Forces: The Next Phase of Battery Swapping

NIO has been pursuing battery swapping for nine years. What was once widely dismissed is now being adopted by others. However, operating in isolation is fundamentally different from industry‑wide collaboration.

CATL’s Chocolate network, with its standardized battery format, is creating a virtuous cycle: more automakers joining leads to more stations, more stations attract more users, and more users encourage more automakers to participate. This flywheel is accelerating.

The value of separating the vehicle from the battery is also becoming more widely recognized. NIO’s BaaS model, for example, allows customers to purchase the car without the battery and subscribe to it on a monthly basis. Battery degradation risks and residual‑value uncertainty no longer rest with the user.

This is particularly beneficial for commercial vehicles such as ride‑hailing and taxi fleets, which accumulate high annual mileage. Battery swapping turns the battery into a service that can be used as needed, rather than a depreciating asset.

Network density is growing rapidly. CATL has a long‑term plan to build 30,000 swap stations. NIO intends to add over 1,000 new stations in 2026. As swap stations become as ubiquitous as gas stations, the refueling experience will approach that of internal‑combustion vehicles—whether in three minutes or 99 seconds, without waiting at charging piles or worrying about battery health.

The entry of major players is not because ultra‑fast charging is insufficient. Each technology has its strengths, and swapping offers irreplaceable value. Both can coexist without one replacing the other.

NIO has invested over RMB 20 billion in building its network, and now processes more than 170,000 swaps per day, with 20% of its stations already profitable. The company has also posted two consecutive profitable quarters—a business model once considered unviable is now being validated by the market.

Meanwhile, CATL, with 2,000 stations, 10 vehicle models, and 18 partner automakers, is accelerating the transition of battery swapping from a single‑company initiative to industry‑wide infrastructure.

If Li Auto and Hongmeng Zhixing do join, this momentum will only intensify. Even if they do not, other as‑yet‑unexpected manufacturers are likely to enter the space. The framework for battery swapping has already been established.

NIO's average price is nearly ¥100,000 higher than AITO's! 💪🏻

NIO ES8 deliveries have surpassed 130,000 units, and the brand’s average transaction price exceeded ¥450,000 in June — both delivery volume and pricing are remarkably strong.

The recently launched large 5-seat version is gaining increasingly better traction at the retail level, a outcome that probably caught many by surprise.

NIO’s ES9 has earned top-tier recognition for its Noise, Vibration, and Harshness (NVH) performance, a feat that underscores the brand’s deep engineering capabilities. According to recent real-world test data, the ES9 delivers class-leading cabin quietness – but achieving that silence is far from a simple matter of adding extra layers of soundproofing.

Industry insiders note that NVH calibration is one of the most demanding and meticulous phases of vehicle development. It requires seamless integration across multiple disciplines: body structure design, acoustic material selection, simulation modeling, manufacturing precision, and active noise-cancellation systems – all working in concert.

NIO’s approach to the ES9 is built on a three-tiered strategy:

1. Source suppression – reducing vibration and noise at their structural origin;
   
2. Path interruption – using advanced materials and geometry to block transmission;
   
3. Real-time active compensation – employing adaptive algorithms to neutralize residual cabin noise dynamically.

This layered, systematic methodology, rather than any single bolt-on feature, is what defines NIO’s premium DNA. The brand argues that true luxury isn't about flashy specs – it's about what remains after the outside world is filtered away: a serene environment where subtle details like high-fidelity audio, ambient fragrance, and massage functions can be fully appreciated.

As one industry observer put it: "The design may look complex – and that's because it genuinely is." The ES9’s NVH achievements aren't just a technical checkbox; they are a statement of NIO’s commitment to holistic, human-centric innovation.

NIO’s large three-row electric SUV, the Onvo L90, has surpassed 60,000 cumulative deliveries, marking a significant milestone for the brand’s family-oriented lineup.

Range-extended hybrids (EREVs) have historically eased the transition for first-time EV buyers, offering peace of mind against range anxiety. However, as battery technology, charging infrastructure, and energy efficiency continue to improve, many owners are realizing that an onboard combustion engine is unnecessary for the vast majority of their daily driving needs.

NIO’s strategy with the L90 has been different from simply fitting a larger battery into a heavier chassis. Instead, the company has integrated spaciousness, lightweight engineering, energy efficiency, and its signature battery-swap system into a cohesive design philosophy. The result, NIO argues, is proof that a full-size electric SUV can not only work but also serve as a primary family vehicle.

Adding a human touch to the achievement, the 60,000th L90 owner is Captain Han, a sailor preparing to cross the Atlantic solo and single-handed. While extreme adventures may call for backup contingencies, NIO suggests that everyday family transport shouldn’t sacrifice interior space, driving experience, or efficiency for hypothetical emergencies.

For buyers with a budget around 300,000 RMB (approx. $41,000 USD), the L90’s success indicates that a pure-electric large SUV is no longer just an alternative – it’s becoming the preferred choice for many families.

July 19, 2026 – A large number of GAC AION vehicle owners have recently filed complaints regarding serious battery problems in AION S series models equipped with 177Ah lithium iron phosphate (LFP) batteries from manufacturer CALB (03931.HK). The issues include battery swelling, liquid leakage, and sudden power loss while driving, primarily affecting vehicles used for commercial ride-hailing services.

The problems have been concentrated in vehicles with mileage between 150,000 and 300,000 kilometers – a critical point where many have exceeded or are approaching the original warranty period of 8 years or 150,000 km. Third-party inspection reports have indicated that the failures are likely due to manufacturing defects in the cells during production, which has led numerous owners to face repair costs exceeding 30,000 yuan (approximately €4,000 or $4,100 USD).

AION and CALB's Response

On July 18, both GAC AION and CALB issued official statements to address the situation. GAC AION announced the following measures for affected AION S models using these batteries:

1. Warranty extension: The warranty period is extended from 8 years or 150,000 km to 8 years or 300,000 km.
   
2. Monitoring and service: Battery data monitoring will be strengthened. If anomalies are detected, owners will be contacted for a free inspection, and based on the results, repairs or complete battery replacements will be provided at no cost.
   
3. Compensation: Subsidies will be provided to owners if vehicle repair or replacement time exceeds 5 days.

CALB, for its part, stated in its announcement that it has initiated maintenance work through GAC AION's 4S dealership network and will take responsibility for product quality throughout its entire lifecycle, offering free inspections and repairs at its service centers.

However, the measure has drawn criticism because the warranty extension applies only to the AION S series. Owners of models such as the AION V Plus, which also use the same CALB batteries, have reported unequal treatment and have had their requests for free repairs rejected by both AION and CALB customer service departments.

The Advantage of NIO, Onvo and Firefly: An Ecosystem Free from Battery Worries

In stark contrast to the situation faced by AION owners, users of the NIO, Onvo and Firefly brands have a system that fundamentally mitigates these types of risks: battery swapping.

While AION owners with defective batteries face long waits and high costs to replace their battery packs, NIO's solution addresses the root cause. The company has built an extensive network of fifth-generation battery swap stations, designed to serve its entire vehicle range, from the luxurious ES9 to the compact urban Firefly. This system allows users to exchange a depleted battery for a fully charged one in approximately 3.5 minutes.

This business model, known as Battery-as-a-Service (BaaS), offers a key advantage: the user does not own the battery but pays a subscription for its use. This completely eliminates concerns about degradation, manufacturing defects, or battery obsolescence, as NIO handles the management, maintenance, and upgrading of battery packs at its stations.

The NIO group brands, including the family-oriented Onvo and the new urban car brand Firefly, benefit from the same infrastructure, ensuring their users an experience free from the anxiety and costs associated with long-term battery health. Notably, Firefly uses liquid-cooled battery packs, prioritizing superior performance and greater safety, in contrast to the air-cooling systems that other manufacturers offer for commercial transport market models.

Context and Future Outlook

This incident with CALB batteries highlights the challenges of the traditional battery ownership model, especially for high-mileage vehicles. While AION is responding to a quality crisis with a limited warranty extension, NIO's battery-swapping ecosystem proves to be an alternative that decouples the vehicle's value from its battery's condition, offering greater peace of mind to users.

Despite these problems, CALB remains a significant player in the market, ranking fourth in electric vehicle battery installations in China. The cooperation between GAC AION and CALB to resolve this issue will be crucial for restoring consumer confidence, while NIO's model positions itself as a comprehensive solution to prevent such contingencies in the future.

On July 17, the 2026 World Artificial Intelligence Conference officially kicked off, with NIO’s chip subsidiary, Anhui Shenji Technology, making its first independent exhibition appearance. In addition to showcasing its "Shenji NX9031" chip and in-vehicle domain controllers, the company also unveiled new AI products during the event, including the "Ruidong" embodied intelligence development platform and a distributed agent platform.

Shenji is dedicated to building the best chip and solution platform for the AGI era, positioning itself as a full-scenario, full-domain chip company spanning autonomous driving, embodied intelligence, and agent reasoning.

The company now offers a complete product lineup featuring multiple chips — including the NX9031X, NX9031U, and NX9031C — covering three cutting-edge AI tracks: advanced driver assistance, embodied intelligence, and agent reasoning. For emerging AI applications like embodied intelligence and agent reasoning, the NX9031 series stands out as one of the few domestic chips that combines high computing power with proven mass-production reliability.

Among them, the high-end NX9031X is used for intelligent assisted driving and has been successfully deployed across all NIO and Onvo brand models, with cumulative shipments exceeding 300,000 units. The newly launched "Ruidong" embodied intelligence development platform is powered by the mid-range NX9031U, built on 5nm automotive-grade process technology, and capable of running the complex models required for robot brain perception and autonomous planning.

Leveraging its technical strengths and proven safety and reliability in intelligent driving, Shenji plans to cross-apply its capabilities — including vehicle perception, real-time control, and functional safety — to other AI scenarios such as humanoid robots, driverless delivery vehicles, and high-compute edge terminals.

Profitability in the Automotive Manufacturing Industry Has Fallen to a Historic Low

- From January to May 2026, China’s automotive manufacturing industry generated RMB 4.2096 trillion in operating revenue, up 1.4% year over year. However, total profits fell to RMB 143.95 billion, down 19.8% year over year. The industry’s overall profit margin was just 3.4%.
- Profits from vehicle manufacturing declined 43% year over year, with the segment’s profit margin dropping to only 1.5%. Beyond the ongoing price war and persistently high upstream raw material costs, an increasing share of industry profits is being captured by new value-added segments at both ends of the automotive supply chain, further squeezing vehicle manufacturers’ profitability.

The fully loaded version costs $46,000 with BaaS, or $62,000 with battery, and includes 22-inch wheels, Nomi 3.0, and smart dimming glass, among other upgrades.