(Yicai) Dec. 16 -- Nio has set a crucial target for its future to become profitable in 2026, according to the founder of the Chinese electric vehicle maker.

Nio will focus on boosting sales, enhancing gross profit margin, controlling costs, and improving operational efficiency to turn a profit in 2026, William Li, who is also chairman and chief executive of the Shanghai-based carmaker, said recently.

The urgency to become profitable is due to Nio's development being around two years slower than expected, Li noted, pointing out the firm's plans from 2017 and 2018 to have reached its current performance results in 2022.

Nio aims to deliver around 220,000 vehicles this year and double the figure next year, launching its family-orientated second brand, Onvo, in September to help it achieve the goal. On Nov. 20, Nio said it will release the first of its high-end models under its third brand, Firefly, on Dec. 21. Feature hybrids sold exclusively in overseas markets, deliveries of Firefly models will start in the first half of next year.

Nio remains committed to entering 25 overseas markets by next year, focusing mainly on the Onvo and Firefly brands. Unlike its previous European strategy involving a fully direct-to-consumer model, its intention has shifted to making more global alliances to speed up its international expansion.

China's auto market will continue to grow through 2025, with the market share of new energy vehicles likely exceeding 75 percent next year and 90 percent by 2027, Li noted. Nio will refrain from engaging in price wars despite this crucial transition period from fuel cars to EVs being marked by intense competition that impacts profitability across the industry, he said.

Leading carmakers will likely see an acceleration in sales starting next year, with the gap to second-tier manufacturers widening, according to Li.

Editor: Martin Kadiev