Nio CEO William Li and Onvo President Alan Ai held a press conference to outline the future of the Onvo brand and its strategic positioning relative to Nio. They announced that Onvo’s second model will be a larger SUV designed for families, seating six or seven people, but it is not expected to enter production before mid-2025 according to Car News China.
Onvo is set to open 100 directly operated stores by September, coinciding with the launch of the Onvo L60, and aims to expand to 200 stores by the end of 2024. Unlike Nio, Onvo will not offer exclusive clubhouses (Nio Houses) for its buyers, and Onvo customers will not have access to Nio Houses. Franchising is being considered to increase store numbers and market penetration.
Nio’s sales currently predominantly occur in first-tier cities, but Onvo is expected to have stronger penetration in second, third, and fourth-tier cities. This expansion will also support the establishment of battery swap stations in these areas, which will benefit existing Nio users. Onvo vehicles will be compatible with both third and fourth-generation swap stations, although the Onvo L60’s 60 kWh and 90 kWh batteries differ from Nio’s models. There are about 1,000 swap stations across China.
Li also provided insights into Nio’s multi-brand strategy, which includes a forthcoming third brand codenamed Firefly. The focus is not on offering cheaper vehicles but on meeting diverse customer needs. For Onvo, this involves cost-saving measures such as reducing to a single motor, using one Orin X intelligent driving chip, removing Lidar, and downsizing the base battery pack. According to Geek Park, these changes alone reduce costs by approximately 45,000 yuan ($6,200).
“Nio’s multi-brand strategy enables us to cater to a wide range of customer needs, much like European car groups such as Volkswagen, which serves different demographics with brands from Bentley to Skoda,” Li explained.
William Li also announced that the second-generation Nio Phone will launch this year.
Pre-sales of the Onvo L60 began on May 15, priced at 219,900 yuan ($30,500), with an option for a battery subscription at 170,000 yuan ($23,500). Alan Ai stated that orders received so far have far exceeded expectations. William Li previously asserted that the Onvo L60 would outsell the Xiaomi SU7.
Designed by former Bentley designer Raul Pires, the Onvo L60 features the ‘Way Up’ design concept and is built on the NT3.0 platform, a 900V silicon carbide platform. It includes seven 8-megapixel high-definition cameras, 4D imaging radar, and four 360-degree cameras, with a maximum forward detection range of 687 meters. The vision-based intelligent driving system will be available from the start of deliveries later this year. Inside, the L60 features a 17.2-inch 3K control screen with 12,000 nit brightness and a 13-inch head-up display.
