Chinese police just gave Nio a vote of confidence and investors took notice
Chinese electric vehicle maker Nio (NIO) has received a notable vote of confidence from local government agencies, underscoring its growing presence in China’s increasingly competitive EV market.
According to industry outlet ChinaEV Home, Nio’s ONVO L90 — a mid-to-large electric SUV designed for fleet and institutional use — has been selected for inclusion in a public security procurement program for police vehicles in Sichuan.
Sichuan is one of China’s most populous provinces and a major regional economic hub, making it an important testing ground for large-scale vehicle deployments.
Public security procurement programs typically impose strict requirements related to reliability, safety standards, durability, and after-sales service. Inclusion in such a program indicates that Nio’s vehicle meets government-grade specifications, providing a form of external validation that is often difficult for automakers to obtain.
If the selection leads to actual fleet orders, government adoption could also help reduce sales uncertainty.
Public sector purchases tend to be more stable and less sensitive to short-term consumer demand, potentially offering Nio a steadier source of demand amid intense competition in China’s EV sector.
These developments align with Nio’s ambition to expand its share of China’s EV market, which remains dominated by BYD and, to a lesser extent, Geely and Wuling, according to industry data.
Signs of momentum in Q4
The Sichuan procurement development comes as Nio executives strike an upbeat tone on the company’s near-term outlook. CEO William Li was cited by local media as saying he expects fourth-quarter revenue to exceed 30 billion yuan, or about $4.3 billion.
“For the fourth quarter, in terms of our sales, our officially announced single-month procurement figures, as a preliminary guidance, should exceed 30 billion yuan,” Li said.
The comments helped lift NIO shares at the start of the week, with the stock posting gains in Hong Kong before extending higher in New York trading.
If realized, revenue at that level would represent a substantial sequential improvement from the third quarter, when Nio delivered more than 87,000 vehicles, reflecting stronger volumes and a more favorable sales mix toward year-end.
According to its third-quarter report, Nio is seeing early signs of market traction for its ONVO and Firefly sub-brands, which target different price segments as the company broadens its product lineup beyond its core premium offerings.
Despite a turbulent year, NIO shares are up nearly 28% in 2025, marking a potential turning point after several years of underperformance. Shareholders are still nursing losses of about 88% over the past five years.