Nio Introduces Onvo Brand as Tesla Model Y Challenger in EV Market

May 18, 2024 02:00 AM EDT

LIGHT TRAFFIC IN CITY ROAD CARS — (Photo : PEXELS/Connor Steinert)

Marking a significant milestone, Nio unveiled the inaugural electric vehicle from its affordable Onvo L60 series in Shanghai on the International Day of Families. Positioned as a direct competitor to Tesla's Model Y, this new electric SUV from Nio's Onvo brand, priced at $30,500 (219,900 yuan), is generating keen interest among analysts following its launch this week.

Introducing Nio's Onvo L60

Targeting direct competition with Tesla's Model Y and Toyota's RAV-4, Nio's Onvo L60 is designed as a fully electric alternative. In China, consumers have the option to select an Onvo L60 model that excludes the battery pack, offering a unique monthly subscription payment method.

In a report by Reuters, CEO William Li unveiled the Onvo L60 SUV in Shanghai, articulating the company's ambition to challenge Toyota Motor's RAV4 by delivering family-oriented vehicles that harmonize customer experience with ownership expenses.

During the event, Li stated, RAV4 and Model Y set the standards for family cars previously. With advancements in technology and increasing consumer knowledge about smart EVs, Nio is now poised to redefine the benchmarks for family vehicles.

Furthermore, the report shared that benefiting from a more competitive pricing strategy, the Onvo brand presents an opportunity for Nio to venture beyond its domestic market, potentially exploring international markets such as Europe. However, these expansion plans are currently overshadowed by an ongoing investigation by the EU concerning subsidies on electric vehicle imports from China.

Ai Tiecheng, the president of the Onvo brand, highlighted that the Onvo L60 features Nio's proprietary 900-volt fast-charging system and boasts an average energy consumption of 12.1 kilowatt-hours (kWh) per 100 kilometers, slightly surpassing Tesla's Model Y in efficiency.

More About Tesla Model Y's Upcoming Competitor

As reported by CarScoops, using the CLTC cycle, the Extra Long Range version is expected to reach a range of more than 621 miles (1,000 km). Customers can also choose between the Standard Range model, which has a driving range of 345 miles (555 km) on a single charge, and the Long Range variant, which has a range of 454 miles (730 km).

As per Electrek's report, which was retransmitted by Wang Bin's team of Deutsche Bank analysts, the Onvo L60 SUV is expected to start deliveries in September 2024, with a monthly delivery target of roughly 10,000 units. . The analysis further indicated agreement with Nio's objective of surpassing 20,000 monthly deliveries, suggesting that this target is feasible with the support from the Onvo line.

Bin's team anticipates NIO introducing six fresh vehicle models in the upcoming year, aiming to achieve 300,000 units in sales. This target translates to around 25,000 units sold monthly, encompassing NIO's latest addition, the Onvo brand.

During discussions led by NIO CEO William Li and Onvo's President Alan Ai, it was disclosed that the brand's next release will be a larger electric SUV capable of seating six or seven individuals. As reported by CarNewsChina, this second Onvo electric vehicle is set to make its debut in 2025.

Alongside the forthcoming Onvo models, Bin's analysis foresees the launch of four additional NIO brand vehicles in the same period. These include the ET9 Sedan, ES8 SUV, and ES7 SUV, all built on the innovative NT 2.0 platform.