NIO Inc. founder, chairman, and CEO Li Bin suggested that consumers consider purchasing vehicles sooner rather than later, citing rising costs of key components including memory chips.

Speaking at a media briefing on January 6 following the rollout of NIO’s one-millionth production vehicle at its XinQiao II factory in Hefei, Li said the automotive industry, like AI and consumer electronics sectors, is competing for raw materials such as copper and silver. While prices have increased, Li noted that the cost pressures have not yet been fully passed on to vehicle prices, leaving NIO with some margin flexibility.

Looking ahead to 2025, Li identified memory chips, rather than raw materials, as the biggest cost pressure for automakers. He highlighted competition from AI, data center, and smartphone industries for these components.

“Rising raw material and memory prices are creating significant cost pressure for the automotive industry. Consumers may want to consider buying vehicles sooner rather than later,” Li said.

During the briefing, Li also addressed NIO’s performance and goal completion for 2025, as well as plans for 2026 and other industry developments.