Nio’s sub-brand Onvo is developing two new models—a sedan and a sport utility vehicle—as it seeks to expand its lineup and strengthen its position in China’s mass-market electric vehicle segment.
According to LatePost, the two models are expected to target the 200,000 yuan ($28,930) price range. The planned sedan is aimed at small families while also addressing commercial use cases, the report said, citing people familiar with the matter.
The projects had previously been put on hold in early 2025 during Nio’s internal restructuring of its cell business unit, but development resumed in August last year. The company may introduce additional models depending on market conditions, as it looks to broaden its presence in the highly competitive mid-range segment.
Onvo currently offers two models: the Onvo L60 and the Onvo L90. Strong early sales of the L90, which exceeded 10,000 units in its first month, contributed to a 55.2% year-on-year increase in Nio’s total deliveries during that period.
The renewed development effort also follows strong market reception for the latest Nio ES8, whose initial production run sold out shortly after launch, highlighting continued demand for new models.
Nio is seeking to scale its Onvo brand to improve overall profitability, as higher volumes could help offset the company’s fixed costs in research, development and supply chain operations. Industry competition remains intense, with numerous domestic automakers targeting the same price segment.
The company is also expanding its SUV lineup, with new models including the ES9 and Onvo L80 expected to be priced and delivered in the coming months, according to company executives.
In addition, Onvo plans to introduce a LiDAR-equipped version of the L60, moving from a vision-only system toward a sensor-fusion approach in its driver assistance technology.
The strategy reflects Nio’s broader push to compete more aggressively in China’s mainstream EV market while maintaining its presence in the premium segment.