(Yicai) March 13 -- Chinese electric vehicle startup Nio is undergoing an organizational shakeup to control costs and focus resources on projects that can create value within three years, according to a report by The Paper.

Several departments will be streamlined and consolidated based on Nio’s annual operational goals, The Paper reported yesterday, citing a source familiar with the matter. Nio’s mobile software team, for instance, has been merged into the digital cockpit team, much reducing redundant roles.

During a recent meeting at the Shanghai-based company, Chief Executive William Li said roles and projects failing to create user value will be eliminated.

Over the past year, Nio has brought in a Cell Business Unit model, breaking down its operations into distinct business units with clearly defined performance metrics. It has also taken major steps in cost control, particularly in its supply chain and product development, the source noted.

Li has beefed up oversight of supply chain management and has been directly involved in procurement decisions, examining costs and directly participating in price negotiations for core components, such as batteries, the source said. He also monitors weekly sales and works with the supply chain team to analyze cost-reduction trends and targets, guiding future business decisions.

Nio delivered about 222,000 EVs last year, up 39 percent from the year before. The company has handed over a total of 650,800 Nio-branded vehicles and 20,800 Onvo-branded cars so far.

Widespread price cuts as automakers jostle for market share dented auto industry profits last year, according to data from the China Passenger Car Association. Nio reported revenue of CNY18.7 billion (USD2.6 billion) and a net loss of nearly CNY5.1 billion (USD700 million) in the third quarter of 2024, down 2.1 percent and up 11 percent, respectively, from a year earlier.

Editor: Futura Costaglione