Niu Technologies' Q2 2025: Unpacking Contradictions in Gross Margins, Sales Growth, and Scooter Strategy

Gross margin improvement and ASP trends, sales volume growth expectations, sales target and productivity improvements for kick scooters, domestic sales volume projections, gross margin recovery timeline are the key contradictions discussed in Niu Technologies' latest 2025Q2 earnings call.



Strong Sales Volume and Revenue Growth:
- Niu Technologies recorded a sales volume of 350,000 units in Q2 2025, representing a 37% year-over-year increase.
- Revenue reached RMB 1.26 billion, a year-over-year growth of 35%.
- The growth was driven by product portfolio optimization, cost reduction, and strong domestic market performance.

China Market Expansion:
- Sales in the China market surged by 54% to 318,000 units.
- The China market contributed 91% of total revenue.
- Growth was fueled by strategic expansion into Tier 3 and Tier 4 cities, with increased retail store footprint and effective channel expansion.

Branding and Marketing Impact:
- Niu Technologies achieved RMB 1.06 billion in GMV during the 618 shopping campaign, a 128% year-over-year surge.
- Successful marketing milestones and product launches, including the May 13 and July 17 events, significantly enhanced brand positioning.
- These efforts helped establish the company's brand as a leader in urban mobility.

Direct Distribution and Overseas Market Recovery:
- Direct distributed electric 2-wheeler sales in the overseas market marked a more than 4x increase.
- Sales at the micromobility segment declined by 41% year-over-year, due to U.S. tariffs and price competition in Europe.
- The company is focusing on expanding direct sales channels, which is anticipated to drive long-term growth and profitability.