Nio has introduced a new brand, Onvo, with its first vehicle, the L60 SUV, priced aggressively to compete with Tesla. The L60 starts at 149,900 Chinese yuan ($21,210) when purchased with a monthly battery subscription service, priced at 599 yuan. Without the subscription, the model starts at 206,900 yuan. Deliveries are expected to begin on September 28.
Nio’s stock saw a brief rise of over 3.5% in U.S. trading following the L60’s official launch. The pricing for the new SUV was lower than what Nio had initially announced in May, further positioning the Onvo brand as a direct competitor to Tesla’s Model Y, which is priced at 249,900 yuan in China.
Nio CEO William Li shared plans for potential international expansion, stating that Onvo could enter the European market as early as next year, though he did not provide a specific timeline. He emphasized that Onvo is aimed at different price segments from Nio’s premium vehicles, with both brands catering to distinct markets. The launch of Onvo comes as Nio’s deliveries continue to improve, despite concerns about cannibalization between the two brands.
The electric vehicle (EV) market in China is growing increasingly competitive. Geely-backed Zeekr is preparing to launch its own electric SUV, the Zeekr 7X, starting at 239,900 yuan, while Xpeng’s mass-market brand Mona is offering its M03 coupe at 119,800 yuan. Tesla, meanwhile, cut the price of its Model 3 to 231,900 yuan in China, continuing to vie for market share.
Internationally, Chinese automakers, including Nio, have been gradually expanding into Europe. However, rising tariffs and an ongoing investigation by the European Union into subsidies for Chinese EV makers are creating challenges. As a result, Nio’s vehicles will face a 20.8% import duty in the EU, higher than tariffs imposed on Geely and BYD.
Despite these hurdles, Nio remains committed to the European market. The company plans to focus on existing markets in Europe, where it has already established a presence, including opening its NIO house in Amsterdam earlier this year and continuing to deploy its power swap stations.
Li expects the L60 to reach 10,000 deliveries monthly by December and grow to 20,000 deliveries per month next year. He anticipates a 15% vehicle margin on the Onvo brand. By the end of this year, Onvo aims to have more than 200 stores in China, with over 100 already open.
In addition to Onvo, Nio plans to launch Firefly, an even lower-priced brand, with vehicles designed for international markets, starting deliveries next year.
