Chinese electric car manufacturer Nio revealed on Thursday its plans to introduce its new lower-priced brand, Onvo, on May 15, signaling a strategic move in response to the intensifying competition within China’s electric vehicle (EV) market.
The announcement follows a trend of price adjustments in the industry, exemplified by Tesla’s recent price cuts, as companies vie for market share. Xpeng, another prominent EV startup, has also announced intentions to unveil a sub-brand named Mona within the next two to three months.
Nio disclosed that the inaugural model under the Onvo brand, the L60, will be positioned as a “family-centric smart BEV priced around RMB 250,000,” positioning it in the same segment as Tesla’s Model Y, with an approximate price of $34,600.
This move contrasts with Nio’s existing lineup of SUVs and sedans, which typically retail for nearly 300,000 yuan or higher. The company experienced a surge in electric car deliveries in April, with 15,620 units delivered compared to 11,866 units in the previous month.
Nio’s CEO, William Li, hinted that the initial Onvo offering would be an SUV model priced below the Model Y.
According to Nio, the name Onvo signifies “On Voyage,” while the Chinese name “Le Dao” translates to “Path to Happiness.” While Nio has expanded its presence to European markets, it has not yet clarified whether Onvo vehicles will be available outside of China.
