Onvo, a sub-brand of Chinese electric vehicle (EV) maker Nio, has expanded its car-buying promotions in February, offering larger incentives than before, as competition in China’s auto market heats up following Tesla’s recent price cuts.
Onvo announced on its social media platforms that customers purchasing its L60 model by February 28 can benefit from a zero percent down payment and a three-year interest-free financing program, saving up to RMB 14,840 ($2,040). New buyers will also receive three years of free access to the NOA (Navigate on Autopilot) feature, valued at RMB 11,520.
See also: Nio’s Sub-Brand Onvo Nears Launch of Second SUV Model
For customers opting for the BaaS (battery as a service) plan, Onvo is offering a waiver on every fourth bill within three years, worth RMB 4,193. Additionally, new customers will receive 24 vouchers for free battery swap services, valued at RMB 1,620, as well as discounts on body color and wheel options, each worth RMB 3,000. Buyers will also earn credit points worth RMB 300 upon delivery.
Combined, these entitlements allow customers to save up to RMB 30,000 this month, according to Onvo’s promotional poster.
The latest incentives mark an expansion of Onvo’s January offerings, which included a zero down payment, three-year interest-free financing, free NOA access, 12 battery swap service coupons, and up to 12 BaaS bill waivers. While the number of free battery swap services has increased this month, the BaaS bill waiver benefits have been reduced.
See also: Nio’s Sub-Brand Onvo Targets 500 Stores by March 2025, Aims for 20,000 Monthly Deliveries
Onvo’s move comes as China’s auto market reignites a price war following the Lunar New Year holiday. On February 5, the first working day of the Year of the Snake, Tesla fired the first shot by offering an RMB 8,000 insurance subsidy for its Model 3 sedan.
Less than two hours after Tesla’s announcement, Xpeng (NYSE: XPEV) unveiled its own promotional policy, providing zero percent down payment and zero percent interest financing for up to five years.
Nio’s main brand also joined the competition, announcing on February 1 that customers paying a deposit for a Nio model in February could access a down payment as low as 20 percent and a five-year zero percent interest financing program, saving buyers approximately RMB 30,000 in interest.
See also: Nio’s Onvo to Launch Two New SUVs in 2025 Following L60 Release
“With these entitlements, customers buying the Onvo L60 this month can save up to RMB 30,000,” Onvo stated in its promotional materials.
The renewed price war highlights the intense competition in China’s EV market, as automakers vie for market share amid slowing consumer demand and economic uncertainties.