Nio is set to officially unveil its sub-brand, Onvo (known as Ledao in China), on May 15, with its inaugural model poised to compete directly with Tesla’s (NASDAQ: TSLA) Model Y.
Onvo’s first offering, the Onvo L60, will enter the market targeting the smart, family-centric pure-play EV segment in the RMB 250,000 ($34,600) class, Nio announced. The company aims to redefine the standard for family cars with the Onvo L60, setting a new benchmark for the segment.
The Model Y, a popular SUV in China, currently enjoys robust sales of tens of thousands of units monthly, with a starting price of RMB 249,900 yuan. Nio’s decision to introduce Onvo reflects its strategic move to capitalize on this lucrative market segment and compete head-on with Tesla.
William Li, founder, chairman, and CEO of Nio, emphasized that the Onvo brand will play a pivotal role in accelerating the company’s journey towards its one millionth vehicle milestone.
Furthermore, Li revealed that the bill of materials (BOM) cost for Onvo’s debut model will be approximately 10 percent lower than that of the Tesla Model Y, underscoring the brand’s commitment to offering competitive pricing without compromising on quality.
Explaining the brand’s name, Nio stated that “Onvo” stands for “On Voyage,” while the Chinese name, Ledao, translates to “Path to Happiness,” embodying the brand’s vision of creating happiness for families on their journeys.
Onvo is strategically positioned to cater to the mainstream family market, promising to deliver an exceptional brand and product experience for family-oriented consumers. Nio highlighted that the brand boasts mature and reliable systems for design, research and development, and manufacturing, ensuring high-quality offerings.
