Chinese premium electric vehicle manufacturer Nio is set to unveil a new model under the mass-market brand Onvo by the end of this month. Additionally, the company plans to introduce a smaller EV for the European market priced at less than $30,000 by next year.
Nio has established Onvo to introduce a new electric vehicle, dubbed the L60, which CEO William Li has positioned to rival the Tesla Model Y, the world’s best-selling EV. Nicolas Vincelot, general manager for France, revealed these plans during a France-China business forum in Paris, stating that the new brand is designed to be less premium but still fully electric, catering more to European market needs.
The launch of the Onvo brand was marked by the recent debut of its website in China, teasing details about the L60 model and urging enthusiasts to “stay tuned” for further announcements. Vincelot hinted at more information about the brand, previously known by the code name “Alps,” expected to be revealed by the end of the month.
Onvo is just one of the two sub-brands Nio is introducing. The second, known internally as Firefly, is focused on developing smaller EVs tailored for city driving, with an anticipated price tag below $30,000. Both brands are targeting European sales, with the first Onvo L60 vehicles expected to arrive in Europe by the end of the year, followed by the Firefly brand’s debut in 2025.
The vehicles from both brands will be compatible with Nio’s fast battery swapping stations, allowing for a quick exchange of empty batteries for fully charged ones in just a few minutes. Images of the Firefly prototype, as shared by Chinese auto media, depict a compact four-door hatchback.
Nio’s strategy also includes a shift away from its initial reliance on the subscription model towards a broader distribution approach, involving online sales and leasing, as well as showroom presence in major cities. The company has already begun selling cars in several European countries, including Norway, Denmark, Sweden, Germany, and the Netherlands.
Facing a slowdown in EV sales and intense pricing competition in China, Nio has been implementing cost-cutting measures. Last year, the company announced a plan to reduce its workforce by 10%. Additionally, there have been reports indicating that the Hong Kong-listed automaker is considering spinning off its battery manufacturing division.
With domestic sales plateauing, several Chinese EV manufacturers, including Nio, are expanding into the European market to leverage their cost advantages over local rivals. This move comes amid an ongoing investigation by the European Union into Chinese EV imports to assess whether they violate competition rules.
Vincelot’s remarks coincided with Chinese President Xi Jinping’s visit to France, where discussions with French President Emmanuel Macron and EU Commission chief Ursula von der Leyen were expected to include the EU’s investigation into Chinese EV imports.
