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Reflecting the electric vehicle maker's optimism concerning sales resurgence, Nio said it's planning to build around 200 brick-and-mortar stores, including both Nio House and Nio Space, by the end of 2020, the Chinese National Business Daily reported, citing a report on online news platform Yixian, which quoted Wei Jian, VP, Operations at Nio.
Nio Houses are exclusive clubhouses for Nio customers, conceived with an idea of luring customers. A Nio house consists of a forum, workspace, library, open kitchen, joy camp, gallery and living room.
See Also: Nio CEO Confident Following Rebound In Deliveries: 'Spring For Electric Vehicles Is Near'
Following the lackluster performance for much of 2019 amid declining deliveries and rising costs even as cash resources remained light, Nio introduced another cost-effective concept called Nio Spaces in October. The company promoted these as communal settings where customers can interact with vehicles on display and discover more about Nio Lifestyle.
These perks are necessitated by softer macro-economic and company-specific fundamentals that stifled sales in 2019. Additionally, notwithstanding the vast scope offered by the expanding EV market in China, competitive pressure is intensifying.
Tesla Inc (NASDAQ: TSLA) recently rolled out its domestically made Model 3 vehicles in China. Recently Fiat Chrysler Automobiles NV (NYSE: FCAU) confirmed it's in talks with Hon Hai Precision Industry Co., Ltd.-ADR (OTC: HNHPF), popularly known as Foxconn, to make EVs in China.
Nio shares traded higher by 5.8% to $5.47 at time of publication.
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