By Greg Gao

(JW Insights) Nov 6 -- Chinese electric car maker NIO plans to cut 10% of its workforce amid fierce competition, William Li, the chairman and CEO, announced on November 3 in a company-wide statement in response to rumors of layoffs. 

Li said, “The next two years will be the most competitive phase of EV transformation in the automotive industry, with significant uncertainties in the external environment. This year, we delivered five new products, achieving over 40% market share in the pure electric market with transaction prices above RMB 300,000 (about $41193). However, our overall performance falls short of our target. To secure a place in the finals, we must further improve our execution efficiency and ensure that critical business areas have sufficient resources.”

NIO will complete the specific adjustments in November, said William Li in the statement.

In October 2023, NIO delivered 16,074 new vehicles, marking a 59.8% year on year growth, though it still lags behind companies like XPeng and Li Auto, according to media reports.

NIO released its Q2 2023 financial report in August, reporting revenue of RMB8.77 billion($1.2 billion), a 14.8% decline compared to the same quarter in 2022 and a 17.8% decrease compared to Q1 2023. The net loss was RMB60.558 billion (approximately $8.31 billion).

Another China-based automaker, Chery Jaguar Land Rover, a joint venture between UK-headquartered Jaguar Land Rover and Chinese automaker Chery, also initiated a new round of layoffs in late October, according to local auto media reports.

The layoff percentages in Chery Jaguar Land Rover are approximately 15% to 20%. It affects various departments, including product engineering, quality management, production manufacturing, logistics, and shipping management, according to sources close to this matter. The company had already undergone a round of layoffs at the beginning of this year, and this recent round has impacted even more full-time employees.

The 500,000th vehicle of Chery Jaguar Land Rover was rolled off the assembly line on October 31 in Changshu, eastern China’s Jiangsu Province. Established in November 2012, the company had a cumulative wholesale sales volume of 38,112 vehicles from January to September this year, with an average monthly sales volume of just over 4,000 vehicles, according to data from the China Association of Automobile Manufacturers.