Negative public sentiment has significantly impacted sales of Nio’s Onvo sub-brand, reducing potential volume by 30-40%, Chief Executive William Li said during the company’s earnings call.
“Recent market competition and negative public opinion have adversely affected Onvo’s sales performance,” Li said, attributing the sales shortfall to lower brand awareness, weaker new order intake, inexperienced sales staff, and initial battery supply constraints.
See also: Nio Reports Record Quarterly Net Loss Amid Rising SG&A Expenses, Improved Margins
Despite these challenges, Nio remains committed to its dual-brand strategy, with Onvo sales surpassing those of Nio in 12 regions, Li noted. The company is implementing branding, channel strategy, and employee training improvements to strengthen Onvo’s market position.
Nio reported a record-high total revenue of 65.732 billion yuan ($9.1 billion) in 2024, an 18.2% year-over-year increase. However, the company’s net loss widened to 22.402 billion yuan, up 8.1% from the previous year.
See also: Nio’s Firefly to Launch First Model on April 19, Adopting Nio’s Battery Swap Network
To achieve profitability by the fourth quarter of 2025, Nio has introduced cost-cutting measures and an operational restructuring plan. It has set margin targets of 20% for the Nio brand and 15% for Onvo, while aiming for a 10% reduction in vehicle production costs through supply chain optimization and its self-developed Shenji 9031 chip.
For the first quarter of 2025, Nio expects to deliver between 41,000 and 43,000 vehicles, marking a year-over-year increase of approximately 36.4% to 43.1%. The company’s expanded product lineup includes the flagship ET9 sedan, updated versions of existing models, Onvo’s second model (L90), and the first vehicle from its global-focused Firefly brand.
See also: Nio, CATL Sign Strategic Deal to Boost Battery Swap Services
With a cash reserve of approximately 42 billion yuan, Nio remains confident in its long-term strategy, despite the challenges facing Onvo’s market reception.