[Foreign Language] Hello, everyone. Thank you for joining NIO's second quarter 2021 earnings call. [Foreign Language] In the second quarter of 2021, NIO delivered 21,896 ES8s, ES6s and EC6s. A new quarterly record, representing a strong increase of 111.9% year-over-year. In July, NIO delivered 7,931 vehicles representing a strong 124.5% growth from last year. All three models have achieved a solid performance in the premium SUV market. [Foreign Language] According to the data published by China Passenger Car Association, in the first half of 2021, the penetration rate of battery electric vehicles has reached 8.4% in China. NIO's penetration in the Tier 1 and the Tier 2 cities in China has been growing at a much faster pace. In Shanghai, the first half of this year has witnessed our penetration in the premium SUV segment, reaching 13.7% among all ICE and the electric vehicles.
Our monthly order intake keeps it growing, but the delivery volume will be determined by the overall capacity of the supply chain.
We expect the total delivery in the third quarter to be between 23,000 and 25,000 vehicles. [Foreign Language] In terms of our gross margins, we have achieved a steady performance with vehicle gross margin and overall gross margin standing at 20.3% and 18.6%, respectively. [Foreign Language] Next, I would like to share with you some recent operational highlights of the company. [Foreign Language] Since the first validation build of ET7 rolled off the production line in May, a series of rigorous test of vehicle functionality, performance and homologation have been kicked off.
We are very confident with the on-time delivery of ET7 next year. Meanwhile, the development of NAD, next new generation autonomous driving system is also advancing smoothly. We believe that NAD will deliver the best experience of autonomous driving and lead the charge of autonomous driving technology development in the industry. [Foreign Language] In 2022, we plan to deliver three new products based on NIO Technology Platform 2.0, including ET7.
Our teams are devoting every effort to press forward the development of the new products. [Foreign Language] In the meantime, we are also confidently optimizing and upgrading the NIO Technology Platform 1.0 to strengthen the competitiveness of our current three models. In late August, we will release the NIO OS 3.0, which will go out with a fresh new look of UI [indiscernible] design, new features and further optimization of the existing functions. There continues over-the-air update, the functionality and experience of NIO Pilot have also been improved.
As a result, more and more users have chosen and enjoyed NIO Pilot. In the second quarter, the take rate of NIO Pilot exceeded 80%.
As of July, NIO Pilot has been engaged for a total of over 200 million kilometers. [Foreign Language] In terms of production capacity, despite the semiconductor supply volatilities in the second quarter with joint efforts of the teams and other partners, the production and the delivery have met our expectations in the quarter. Since July, the COVID-19 pandemic and extreme weather events have posed a series of challenges to the global supply chain. The most recent COVID situation in certain regions in China have already affected our production.
We will continue to work closely with our supply chain partners to minimize the impact on the production and the delivery in the third quarter. [Foreign Language] With regards to the sales and service network, we now have 25 new houses and 243 new spaces in 128 cities in China. But we will continue to deploy our new houses and new spaces, improve operational efficiency and quality and expand sales network coverage to quickly build our presence in the Tier 2 and Tier 3 cities.
As of now, we have set up 36 new service centers and 171 authorized service centers in 133 cities.
We will further increase the number of service centers to meet the rapidly growing user service demand. [Foreign Language] Up until now, we have deployed 361 swap stations in 103 cities and completed over 3 million battery swaps for the users. In July, we announced NIO Power's battery-swap station deployment plan by 2025. We plan to increase the total number of battery-swap stations to over 700 by the end of 2021 and to over 4,000 globally by the end of 2025. [Foreign Language] On the other hand, we're also expanding over power charging and destination charging network.
As of now, we have established over 238 power charging stations and installed 2,416 destination charges in China. [Foreign Language] With the accelerated deployment of the charging and swapping network, and deepening understanding of fast when more people can truly experience and recognize the benefits of the battery swapping and fast, which has attracted more users to choose Battery as a Service. [Foreign Language] On the front of the global market, the Norway market entry has been progressing as planned.
The first batch of ES8 has been shipped and expected to arrive in Norway in mid or late August to be ready for the preorder and delivery in September. Starting from September, NIO Apps, NIO Life, NIO House, NIO Power chargeable, swappable and upgradable service system, NIO service center and the delivery center will gradually become available to users in Norway. [Foreign Language] As a user enterprise, our users are playing an increasingly important role in the NIO community. The preparation for NIO Day 2021 has been kicked off with the active participation of our users. Pseudo out of 10 candidate cities has been voted to be the host city of this year's NIO Day. [Foreign Language] Our user community has also joined us in making a positive difference in the world. In July, the City of Zhengzhou and a few places in Hunan Province were hit by heavy rainfalls and floods. NIO dispatched service resources nationwide to support users in Hunan, provided real-time usable charging power information to both NIO users and users of other EV brands and supported the disaster response and relief work with donation and the special purpose fund of NIO Users Trust. [Foreign Language] 2021 is a critical year for NIO to lay a solid foundation for its long-term development.
Going forward into the second half of 2021, we will accelerate the pace of new products and full stack technology development, enhance our charging and swapping network as well as sales and the service network to be fully prepared for the delivery of the three new models in 2022. [Foreign Language] At the same time, we have also stepped up our mass market entry preparation. We'll enter the mass market with a new brand. The quoting of the new brand has been assembled, marking the first step of the strategic initiative of NIO. [Foreign Language] As always, thank you for your support. With that, I will now turn the call over to Steven to provide the financial details for the quarter. Steven, please go ahead.