Written by Cláudio Afonso | LinkedIn | X
In an interview with the local media outlet Jiemian, Alan Ai, Senior Vice President of Nio and President of the sub-brand Onvo, dismissed concerns about how the L60, the first model under Onvo, might affect the sales of Nio models in the same segment.
Four months after the opening of L60 pre-orders, the executive said that customers from the parent brand represent less than 5 per cent of the total number. The brand has never disclosed publicly the number of pre-orders it has secured.
“Currently, less than 5 per cent of our deposit users come from the Nio ecosystem. There may have been more Nio users in May, but the vast majority are new customers. We expect this percentage to continue decreasing. Many have asked why Onvo doesn’t go under the Nio brand. The answer is that we want differentiation,” Alan Ai explained.
The executive continued by recommending potential customers to compare Onvo L60, Tesla Model Y, and other models — if the budget doesn’t allow them to buy a Nio model.
“It’s simple: if you have the budget, buy a Nio. Nio is the best smart electric vehicle, without question. If your budget doesn’t allow for that, then compare Onvo, the Model Y, and other cars, and make a choice based on your needs,” Alan said.
Onvo President clarified that the sub-brand “may not always pursue the latest innovation” while admitting that the models from the cheaper brand will receive “certain technologies” from Nio.
“Nio is more oriented toward high-end business users, while Onvo is more focused on families. In the long run, true luxury lies in being a technological flagship, and Nio will continue to push for cutting-edge innovation. However, Onvo may not always pursue the latest innovation. Nio can pass down certain technologies to Onvo,” he detailed.
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To achieve a monthly delivery capacity of 20,000 units — something that the Group wants to reach “sometime next year”— the executive stated that the brand has stationed procurement and quality teams at suppliers since the first half of 2022 in preparation for production.
Commenting on the higher energy consumption of Nio models compared to the debut model from Onvo, the former WeWork executive used Range Rover and Toyota as a similar case.
“Nio is a high-end brand. Let me give an example. In the past, brands like Land Rover were considered premium, but no one would compare a Range Rover to a [Toyota] Corolla for fuel efficiency because it’s a luxury car. The public accepts that luxury vehicles consume more,” the executive stated.
“Similarly, Nio’s energy consumption is higher because it has larger and more powerful motors. The more perceptible these differences are to consumers, the more distinct the two brands become. Onvo, for example, includes a dedicated family zone in its onboard system,” Alan Ai added.
In a separate interview, Alan Ai said Onvo aims to deliver a vehicle that “remains relevant for the next five years.”
Earlier this month, during the second quarter earnings conference call, Nio Group CEO William Li said the company is targeting 10,000 L60 units delivered in December and a continued increase to 20,000 units monthly deliveries “sometime next year”.
Scheduled for 7:30 pm Beijing Time, the launch of the first model under Nio’s sub-brand Onvo will take place this Thursday September 19.
The first units of the L60, a mid-size SUV with a pre-sale price 219,900 yuan ($31,000), will start in late September across China.
Alan Ai stated in an interview last week that the battery of the L60 is designed to support over 10,000 swaps over its lifetime.
Written by Cláudio Afonso | LinkedIn | X
