NIO (NIO, Financial) shares have risen over 1.5% in pre-market trading, reaching $4.7. This increase comes as Citic Securities reports a significant boost in upcoming automotive consumer stimulus policies. Historically, four major stimulus policies have been analyzed, showing a notable enhancement in policy strength for 2024, with single-vehicle discounts increasing to 9%.
The introduction of trade-in policies in 2024 is expected to support sales throughout the year, particularly in the latter half, with a high likelihood of these policies being extended. There is also the possibility of additional diverse stimulus measures being introduced. Under a neutral forecast, passenger vehicle sales are projected to reach 29.24 million units in 2025, marking a 6.4% year-on-year increase, indicating a positive shift in the industry landscape.
NIO, alongside its second brand, Altra, has announced a limited-time trade-in subsidy policy for users purchasing vehicles with invoices from 2025 until February 28. This policy aims to provide a safety net for buyers opting for the trade-in option.
