Nio’s (NYSE: NIO) sub-brand Onvo is set to expand its lineup with the introduction of two new SUV models next year, following the recent market entry of its first vehicle, the L60 SUV. A report from local tech media outlet Leiphone indicates that the second model will be a six- or seven-seat SUV, anticipated for release by the end of the first quarter of 2025.
Deliveries for this new SUV model are expected to begin around May; however, potential delays have not been ruled out, according to the report. This timeline appears to differ from previous statements made by Nio’s management, suggesting a cautious interpretation of the information.
Following the L60’s launch, Nio’s founder and CEO, William Li, stated in Hefei, Anhui province, on September 20 that Onvo aims to introduce one new model each year. He noted that a mid-to-large-size SUV is slated for release in 2025, characterized as a groundbreaking product that will exceed customer expectations. “If you think the L60 is good, then this new model is a much more competitive product,” Li asserted.
The upcoming SUV is projected to be more significant for Onvo than the L60, which Li described as a “stepping stone” to more advanced models. The six-seat variant is expected to be priced below RMB 300,000 ($42,140), as highlighted by an insider referred to as Zhao Wen.
Onvo’s two new SUV models are expected to be priced between RMB 140,000 and RMB 220,000, leveraging the Battery as a Service (BaaS) model to attract a wider customer base. Zhao emphasized that the new mid-to-large-size SUV will be instrumental in boosting deliveries next year.
In addition to the SUV models, Onvo is projected to announce a sedan in the latter half of 2025; however, this model is not expected to have a significant impact on overall sales in the upcoming year, as per the report.
The L60 was launched on September 19, with deliveries commencing on September 28. The starting price for the L60 is RMB 206,900, which is RMB 43,000 lower than the Tesla (NASDAQ: TSLA) Model Y’s current entry price of RMB 249,900 in China. When opting for the BaaS plan, the L60 starts at RMB 149,900, with a monthly battery rental fee of RMB 599 or RMB 899 depending on the battery capacity chosen.
Li also announced that production capacity for the L60 is expected to reach 5,000 units in October and 10,000 units by December, with plans to ramp up to at least 16,000 units by January 2025 and 20,000 units by March.
The report also mentioned challenges Onvo faces regarding its sales channels. Following the opening of 105 offline stores on September 1 across 55 cities, Onvo plans to increase its store count to approximately 250 by the first quarter of 2025. In addition to new store openings, Onvo aims to collaborate with third-party dealers to enhance its market reach.
At the L60 launch, Onvo’s president, Alan Ai, indicated that the brand’s goal is to expand to 200 stores by the end of the year, covering 68 cities. During a September 5 earnings call, Li expressed aspirations for the Onvo L60 to achieve 20,000 monthly deliveries in 2025.
