NIO, a prominent Chinese luxury carmaker often compared to Tesla, is now branching out into the mainstream market. CEO William Li has announced the launch of their new brand, ONVO, which will cater to budget-conscious family buyers, in contrast to NIO’s focus on the high-end luxury segment.
Previously known as “ALPS” in the media, the ONVO name was officially trademarked by Li last year and confirmed recently. The first car under this new brand, codenamed L60 and to be named Ledao in China, will directly compete with models like the Tesla Model Y.
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NIO Needs More Volume
NIO’s lineup of sedans and crossovers with battery-swapping technology is impressive, but the company is facing challenges in achieving profitability and volume growth. Despite its appealing product range, NIO’s stock price has dipped by nearly 40% in the past six months.
Social media leaks have revealed images of the L60, showcasing a coupe-like fastback crossover that bears resemblance to the Tesla Model Y.
Surprisingly, NIO’s battery-swapping technology will also be featured in the ONVO L60, offering a solution to range anxiety and charging station limitations. This makes ONVO a compelling and competitive option against the Tesla Model Y.
NIO has additional plans for a brand even more affordable than ONVO, known as Firefly. While details are scarce, both ONVO and Firefly are expected to expand beyond China into Europe. Li envisions Firefly targeting the Mini and similar premium EVs outside China.
Both Firefly and ONVO play crucial roles in NIO’s strategy to increase volume and profitability. These more accessible models are intended to broaden NIO’s market appeal and drive higher sales figures.
While it remains uncertain if NIO, ONVO, or Firefly will enter the US market, the brands are set to launch in various European markets. ONVO will debut in China in May, followed by European sales soon after, while Firefly is scheduled for a 2025 release.
Contact the author: kevin.williams@insideevs.com