Chinese electric vehicle manufacturer Nio has unveiled its new lower-priced brand, Onvo, with the launch of its first vehicle, the Onvo L60 SUV. Priced starting from 219,900 yuan ($30,476), the Onvo L60 aims to compete directly with Tesla’s Model Y, the world’s best-selling electric vehicle.
Nio’s CEO, William Li, introduced the Onvo L60 SUV in Shanghai, highlighting the company’s ambition to redefine the standards for family cars. “RAV4 and Model Y were the benchmark for family cars in their time. With technologies evolving and people’s understanding in smart EVs deepening, today it’s time for us to redefine the new standards for family cars,” said Li.
Meet ONVO, NIO's new smart electric vehicle brand, launched on the International Day of Families with an exciting debut! ONVO, derived from "On Voyage," translates to "Path to Happiness" in Chinese, symbolizing "Happiness on Every Path We Travel With Family." ONVO's first… pic.twitter.com/caxN7Qu2sH
— NIO (@NIOGlobal) May 15, 2024
The Onvo L60 boasts a more spacious interior compared to Tesla’s Model Y and is equipped with Nio’s self-developed 900-volt fast-charging system. The vehicle has an average energy consumption of 12.1 kilowatt-hours (kWh) per 100 kilometers, slightly lower than Tesla’s Model Y, according to Ai Tiecheng, president of the Onvo brand.
In addition to competitive pricing and advanced technology, the Onvo brand will benefit from Nio’s extensive charging infrastructure, with access to more than 1,000 battery swapping stations and 25,000 public chargers.
Nio’s decision to launch the Onvo brand comes as the company seeks to expand its market reach, both within and outside China. However, plans to enter the European market are currently overshadowed by an anti-subsidy probe launched by the EU into EV imports from China.
To reduce costs and improve competitiveness, Nio has struck a deal to source batteries from BYD for the Onvo lineup, abandoning plans to produce batteries in-house. This move, combined with Nio’s EV battery rental program, is expected to lower the bill of materials for the Onvo car by 10% compared to Tesla’s Model Y.
Despite facing stiff competition in China’s ultra-competitive EV market, Nio remains optimistic about its prospects. The company’s namesake lineup, priced from 298,900 yuan ($41,200), has sold 45,673 EVs in the first four months of this year, accounting for 3% of China’s overall EV sales. Tesla, on the other hand, delivered 163,841 units in China during the same period, capturing an 11.4% market share.
