Nio is gearing up to launch its mass-market sub-brand, Onvo (Ledao in China), with a strong focus on energy efficiency. Onvo’s president, Ai Tiecheng, emphasized the brand’s commitment to low power consumption from its inception, stating, “We’ve prioritized low power consumption since Day 1.”
One key decision reflecting this commitment was Nio founder William Li’s veto of a vehicle styling that had been in development for six months, all in the pursuit of lower vehicle energy consumption. The company is set to unveil the Onvo brand on International Family Day, May 15, with a livestreamed event at 7:30 pm Beijing time.
Targeting the family-centric smart all-electric vehicle market in the RMB 250,000 yuan ($34,600) class, Onvo’s first model, the Onvo L60, will directly compete with Tesla’s Model Y. Nio aims to make the L60’s bill of materials (BOM) cost about 10 percent cheaper than that of the Model Y, showcasing its commitment to affordability.
“We’ve taken apart a lot of Tesla vehicles, and they’ve done a really good job in a lot of places,” Ai stated in an interview, highlighting the brand’s competitive analysis. He added, “But if Onvo’s cost controls don’t compare to Tesla’s in the Chinese market, that means the job has been done poorly.”
In a notable departure from Nio’s current models, the Onvo L60 will not include LiDAR technology, which is standard in Nio’s existing lineup. Ai mentioned that customers seeking LiDAR-equipped vehicles could opt for Nio’s offerings.
While Ai expressed confidence in Onvo’s competitiveness, especially in the global market, he emphasized a step-by-step approach to international expansion. “In the top-level design of the product, Onvo takes into account the global market,” he said.
With a focus on safety and user experience, Ai stressed that Onvo has conducted extensive research, visiting various Chinese cities and identifying the average car life of a family as seven years. “Safety is fundamental for the family user,” he said, drawing parallels with Disney’s safety philosophy.
