Is NIOH Auto Slowly Making a Comeback?

01/15 2025 606

As 2025 dawns, the saga of NIOH Auto continues to captivate the public eye. A flurry of recent developments has once again thrust the company, which had momentarily receded from the spotlight, back into the limelight.

On the morning of January 6, news broke that NIOH Auto's official website was experiencing technical difficulties and was inaccessible. Concurrently, users in various regions reported receiving news of the closure of local direct-sales stores.

These two pieces of news immediately sparked widespread speculation. For some, NIOH Auto, following a series of reports about factory shutdowns, layoffs, unpaid wages, supplier debts, and frozen equity, appeared to be facing yet another crisis. However, NIOH Auto swiftly refuted these rumors. Regarding the website issue, NIOH Auto's official Weibo account stated, "Upon receiving user feedback, our technical team promptly addressed the issue, and the website is now fully functional."

Subsequently, it was confirmed that NIOH Auto's official website was indeed accessible. A blogger posted, "NIOH Auto's website is back up, Zhang Yong is still at the helm, and the brand remains intact." Additionally, a source from a NIOH Auto direct-sales store revealed that the company had undergone significant adjustments to its channel system, with plans to close direct-sales stores nationwide and retain only dealer stores to streamline channel operating costs. On January 4, NIOH Auto announced the official resumption of work, with production recommencing on January 6. According to the plan, NIOH Auto aims to produce 1,000 vehicles by the 15th of the month, with a total production target of 4,000 vehicles for January and February. The company will gradually resume vehicle and spare parts deliveries that were halted due to the factory shutdown.

Late last year, it was reported that NIOH Auto's Tongxiang factory would resume operations on January 4. Following the resumption of work and production, the NIOH L and NIOH S Shooting Brake versions produced at the Tongxiang factory will primarily ensure domestic supply for these two models. Furthermore, it was reported that in mid-December last year, NIOH Auto gradually began resuming small-batch production, with over 100 overseas orders ready for shipment. The latest news indicates that NIOH Auto has secured a new round of financing, although the specific amount remains undisclosed. Notably, following the resumption of production and securing of financing, well-known blogger Sun Shaojun posed the question, "Is NIOH Auto recovering?" Indeed, the above signs suggest that NIOH Auto is gradually returning to normalcy.

A month ago, amidst reports of mass layoffs and factory shutdowns, NIOH Auto announced that Zhang Yong would step down as CEO, with founder and chairman Fang Yunzhou assuming the role concurrently. Subsequently, Fang Yunzhou issued a letter to all employees, acknowledging the challenges faced by NIOH Auto. In the letter, Fang Yunzhou outlined that NIOH Auto would embark on a second entrepreneurial venture, expanding globally while maintaining a strong domestic presence. Additionally, NIOH Auto would implement a series of reform measures, including an employee stock ownership plan, streamlining middle and back-office functions, and reducing administrative costs. In terms of market strategy, NIOH Auto will focus on overseas markets, concentrating on products that meet market expectations and generate positive gross margins, engaging in moderate domestic competition while aiming to create globally popular models. Fang Yunzhou set an ambitious goal: through a series of reforms, NIOH Auto aims to achieve an IPO while achieving a 50-50 sales split between domestic and overseas markets within the next 2-3 years, turning overall gross margins positive in 2025 and achieving overall profitability in 2026. Currently, NIOH Auto appears to be systematically executing Fang Yunzhou's "Entrepreneurship 2.0" plan, resuming production while strategically adjusting to increase efficiency and expand overseas markets in an orderly manner.

On January 9, the NIOH X and NIOH AYA were launched in Singapore, with NIOH Auto receiving 52 orders on the morning of the launch. Both models have completed localization standard certification for new energy vehicles (NEVs) in Singapore, and new stores are set to open soon. However, due to NIOH Auto's recent past, some public opinion remains skeptical. Perhaps in response to this, NIOH Auto issued a statement following the website anomaly, first providing an explanation that the issue had been resolved and criticizing some self-media outlets for taking advantage of the situation to publish false information, severely misleading the public. Simultaneously, NIOH Auto urged netizens to view the website anomaly rationally, refrain from believing or spreading rumors, and called on self-media outlets to uphold principles of objective and fair reporting, disseminating information accurately and truthfully to jointly create a positive public opinion environment.

Indeed, NIOH Auto currently requires a favorable public opinion environment. However, the fiercely competitive market may not grant the company any preferential treatment. In 2024, when NIOH Auto faced its challenges, the collapse of companies like Jiyue and HiPhi underscored the accelerating trend of market reshuffling in the automotive industry. Currently, many first-tier new energy vehicle makers are also grappling with considerable challenges. Second-tier new energy vehicle makers like NIOH Auto, which have just endured significant pain, face even greater hurdles.

Judging from NIOH Auto's future strategy, overseas markets such as Southeast Asia will become the company's primary sales source. Nevertheless, it's crucial to note that brands like Zero Run, Deep Blue, XPeng, and AION have also set their sights on these markets. Consequently, NIOH Auto will continue to face competition from these domestic rivals overseas. Financial pressure has undeniably been a direct factor in NIOH Auto's troubles. However, from an industry perspective, the root cause of NIOH Auto's gradual decline lies in its disorganized product line and lack of market competitiveness. Overcoming these challenges will undoubtedly be the most effective way for NIOH Auto to truly "turn the tide."

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