Founded in 2014, NIO positioned itself as a user-focused enterprise that designed and manufactured premium smart new energy vehicles (NEVs), with a mission to deliver an exceptional user experience.

Rather than competing head-on with mass-market players, NIO targeted the high-end segment from the beginning. Its strategy combined high-performance EVs, proprietary battery-swapping technology to reduce range anxiety, concierge-style services, and a strong emphasis on community building. Together, these elements formed a distinct user-centric model that differentiated the company from established giants like Tesla and BYD.

To support this vision, NIO invested heavily in R&D, brand marketing, fixed assets, and user operations. But as China's NEV sector entered a phase of intense competition, NIO's sales fell short of expectations, and the company remained unprofitable after launch. By 2024, the competitive landscape had become increasingly crowded—not only with legacy automakers and EV startups, but also with technology firms like Xiaomi entering the race. In response, NIO introduced a second brand, ONVO, in September 2024 to target the mainstream family segment. Unlike the NIO brand, which emphasized premium positioning, ONVO focused on practicality and affordability. But would this strategic shift be enough to drive NIO's growth? How could the company break through in an increasingly saturated market?