NIO

NIO Inc.

DOUBTFUL — METHODS DIFFERstock

Is NIO Halal?

Chinese EV maker — current financial ratios pass, but the business and purification screens remain methodology-dependent.

What You Should Know

NIO's 2025 Form 20-F reports debt/assets of 11.23%, cash plus interest-bearing securities/assets of 24.94%, and receivables plus cash/assets of 10.18%. Electric-vehicle manufacturing is generally permissible, while battery leasing, deposits, investment income, VIE structure, and product and supply-chain risks require qualitative review.

⚠️ Concerns

  • Business-activity numerator is not separately disclosed
  • Battery-as-a-Service and vehicle financing contracts require review
  • Interest and other income was 0.87% of 2025 revenue
  • Chinese VIE, safety, labor, supply-chain and environmental risks

Current quantitative Sharia screen

Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
11.23%Within limit
Below 33.333% under FTSE Yasaar

1,998.277 / 17,789.116

Cash + interest-bearing securities / assets
24.94%Within limit
Below 33.333% under FTSE Yasaar

4,437.217 / 17,789.116

Receivables + cash / assets
10.18%Within limit
Below 50% under FTSE Yasaar

1,811.577 / 17,789.116

Non-compliant income / revenue (upper bound)
0.87%Within limit
No more than 5% under FTSE Yasaar

108.916 / 12,510.547

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt/assets, cash plus interest-bearing securities/assets, receivables plus cash/assets, and the conservative income ratio are below the examined FTSE limits; the business numerator remains undisclosed.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

The three calculated total-assets ratios are below the examined MSCI limits, but the business-activity percentage is not reproducible from the filing.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt and liquidity are below the examined Malaysia limits; this is a calculation against the SAC ratios, not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A licensed, reproducible 24- or 36-month market-cap series is not stored.

Business-activity disclosure

NIO designs and sells electric vehicles and related battery, charging, and vehicle-service products; those activities are generally permissible in principle.

Limitation: The filing does not provide a school-neutral prohibited-revenue numerator for financing, leasing, software, subsidies, or other mixed activities.

Purification

NIO reports interest and other income of USD 108.916 million, or a conservative 0.87% of 2025 revenue. This is disclosed as an upper bound rather than a universal purification prescription.

Inputs, assumptions and primary sources
  • Amounts use the USD column in NIO's 2025 Form 20-F and are USD millions.
  • Interest-bearing debt is the reported short-term borrowings plus current and non-current long-term borrowings, converted using the filing's USD presentation.
  • Interest-bearing securities use short-term investments, primarily fixed and structured bank deposits; equity and long-term investments are not included.
  • Revenue and the conservative interest-and-other-income upper bound use the year ended December 31, 2025.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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