Deutsche Bank has expressed optimism about the debut of Nio’s sub-brand, Onvo, suggesting that the launch of the Onvo L60 SUV could potentially push Nio’s monthly sales above the 20,000-unit mark.
Analysts from Wang Bin’s team noted, “Onvo L60 SUV will officially start delivery in Sep. 2024, and the company is targeting Onvo L60 monthly delivery volume of ~10,000 units,” in a research note to investors.
See also: Everything You Should Know About Onvo L60 Specifications
Nio officially introduced its Onvo sub-brand, known as Ledao in China, and commenced pre-sales of its first model, the L60, priced at RMB 219,900 ($30,500). This pricing positions the L60 RMB 30,000 below the Tesla Model Y.
Scheduled for sale and delivery commencement in September, the L60’s launch is expected to contribute significantly to Nio’s monthly deliveries, potentially exceeding 20,000 units, according to Nio’s management.
Nio’s April deliveries surged by 135 percent year-on-year and 32 percent sequentially, totaling 15,620 units, with robust sales performance from the EC6, ES6, and ET5 models.
See also: Nio Launches Onvo Brand to Challenge Tesla’s Model Y with Lower-Priced SUV
“We think Nio’s expectation of monthly >20,000 unit delivery is achievable with a boost from Onvo,” the Deutsche Bank team stated.
Looking ahead, the team anticipates that both the Nio main brand and the Onvo brand will collectively launch six new products in 2025, aiming for a total sales volume of 300,000 units. The Onvo brand is set to introduce a second product next year, described as a competitive SUV catering to larger families.
William Li, founder, chairman, and CEO of Nio, emphasized that the Onvo brand’s strategy focuses on quality over quantity, aiming to launch one new model annually. He remarked, “If the product is done right, a single model could sell enough, as Tesla BYD has proven.”
