FB Pixel no scriptNio launches the Onvo L60 SUV, throwing down gauntlet to Tesla’s Model Y | KrASIA

Nio launches the Onvo L60 SUV, throwing down gauntlet to Tesla’s Model Y

Written by KrASIA Connection Published on   2 mins read

The Onvo sub-brand expands Nio’s electric vehicle lineup beyond its focus on premium consumers.

In a strategic move aimed at China’s cost-conscious consumers, Nio, the Shanghai-based electric vehicle maker, has unveiled the inaugural EV model of its Onvo sub-brand: the L60 SUV. Set to roll out in September, the Onvo L60, armed with an autonomous driving system, enters the arena to challenge Tesla’s stronghold with its Model Y.

Priced at RMB 219,900 (USD 30,480), the entry-level version of the L60 promises a competitive driving range of 555 kilometers, marking a 12% undercut against Tesla’s Model Y pricing of RMB 249,900 (USD 34,630).

With Nio’s namesake brand positioned as a purveyor of high-end experiences, the Onvo brand—also known as Ledao in Chinese—targets a broader audience, aiming to deliver an enjoyable driving experience to mainstream Chinese consumers.

At a media briefing held during Auto China 2024 in April, William Li, CEO of Nio, shed light on the strategy behind Onvo’s launch. Li described it as a fresh start for the company, emphasizing Onvo’s focus on mainstream consumers to align with the evolving demands of the market, which have increasingly gravitated toward value-for-money offerings.

The launch also comes amid stiff competition from established players both domestically and across borders. Nio is hoping that Onvo will offer differentiation in terms of pricing and experience against the likes of foreign competitors BMW and Audi, while fending off local rivals such as BYD and Xpeng Motors, which have also been adjusting prices and launching new brands to challenge for the Chinese EV market.

Thus far, Nio has remained steadfast in avoiding the temptation of discounts, hoping to safeguard its branding while maintaining its commitment to delivering quality and value.

In terms of performance, April’s delivery figures hint at an upward trajectory for Nio, with a 134.6% increase compared to the previous year. This robust performance comes amidst projections of a 20% sales growth in China’s EV sector for the year.

Nio has high hopes that Onvo will help it to diversify and drive its growth trajectory forward. During an event held earlier in May, Li remarked that he believes the L60 will outsell Xiaomi’s recently launched SU7, which is priced similarly at RMB 215,900 (USD 29,920).

Can Nio redefine the contours of the EV market with this latest move? Only time will tell, when Onvo makes its mark formally later this year.


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