NIO Inc. (NYSE: NIO) has taken the lead among Chinese electric vehicle startups in cumulative 2026 deliveries, following a robust July performance that saw year-over-year growth of 71%. The company delivered 35,934 vehicles last month, a figure that, while down 11.5% from June, was enough to push its seven-month total to 227,057 units.
That cumulative volume places NIO ahead of Li Auto Inc. (NASDAQ: LI) by 3,117 vehicles and XPeng Inc. (NYSE: XPEV) by 23,053 units. It marks a dramatic reversal from the same period last year, when NIO trailed both rivals by nearly 99,000 vehicles. The shift underscores NIO's accelerating momentum in a highly competitive market.
July Delivery Breakdown
July's delivery numbers reveal a mixed picture across the sector. XPeng maintained the top spot for the month with 38,027 vehicles delivered, up 3.6% year-over-year but down 5.2% from June. NIO followed closely with 35,934 units, while Li Auto delivered 30,468 vehicles, a slight 0.9% decline from the prior year and a 1.4% drop month-over-month.
All three companies experienced month-over-month declines, reflecting seasonal softness and broader market headwinds. However, NIO's year-on-year surge was the standout, driven by strong demand for its new and refreshed models.
Product Mix and Margins
NIO's July deliveries were led by the ES8 SUV, which contributed 10,286 units, representing 51.4% of the NIO-brand total. The five-seat version of the ES8, which launched on July 10, helped push cumulative ES8 deliveries past 130,000 within just twelve days. The premium NIO brand accounted for 55.7% of group deliveries, up 1.7 percentage points from June, while the ONVO and FIREFLY sub-brands contributed 28.3% and 16.1%, respectively.
This favorable product mix has been a key driver of margin improvement. In the first quarter, NIO's vehicle margin expanded to 18.8%, up from 10.2% a year earlier. Chief Financial Officer Stanley Yu Qu highlighted the figure in the company's earnings release, alongside a non-GAAP adjusted operating profit of RMB66.8 million. The question now is whether the second quarter, with its higher mix of premium models, can sustain or improve upon those margins.
Stock Performance
NIO's American depositary receipts (ADRs) closed Friday at $4.88, up 8.7% from the previous week, after rising in all five sessions. The gains came ahead of the weekend's delivery report, which was released Saturday. Despite the recent uptick, the stock remains 39% below its 52-week high of $8.02.
Trading volume has rebounded faster than the share price, suggesting renewed investor interest. However, market participants are looking for consistent evidence of margin stability and cash flow improvement before committing further.
Outlook and Risks
NIO has not yet announced a date for its second-quarter earnings release. The report will be closely watched to see if the premium model mix translated into better profitability. Deliveries in the second quarter reached 107,658 vehicles, a 49.4% increase year-over-year.
Risks remain. All group brands saw month-over-month declines in July, and CEO William Li noted that higher raw-material costs have raised the price of each ES8 by nearly 20,000 yuan. Additionally, China's domestic passenger-car sales fell 23.4% in June, indicating broader industry weakness.
With NIO's lead over Li Auto a slim 1.4%, August delivery numbers will be critical. Monday's trading session will provide the first market reaction to the July data, and investors must weigh the delivery momentum against persistent margin and cost concerns.
