Nio’s President Qin Lihong acknowledged on Wednesday that the company’s family-oriented sub-brand Onvo has underperformed expectations, even as he projected cumulative deliveries would reach 200,000 by the end of September — two years after the brand’s handovers started.
“Recently, many people feel that Onvo hasn’t quite lived up to expectations,” he admitted, noting that he thinks “it could indeed have performed better.
The remarks were made at the opening of Nio’s first Nio House in Macau.
“To be honest, Onvo still hasn’t done well enough,” the President added.
His comments came one day after Morgan Stanley analyst Tim Hsiao asked founder and William Li on the company’s second-quarter earnings call about Onvo’s success, given the brand’s momentum had been “routinely moderated” since launch compared with the Nio and Firefly brands.
Foothold in the Mainstream Market
According to the President, the results from Onvo so far mean “we have initially gained a foothold in China’s extremely competitive mainstream market.”
He drew a direct comparison with Audi, a German luxury marque.
“In the first half of this year, Onvo’s average transaction price in the Chinese mainland auto market was more than 240,000 yuan [$35,700],” he stated. “If you include overseas, it comes to over 250,000 [$37,200].”
Onvo is the least prioritized brand in the Nio Group for international expansion, being present in China, Armenia, Uzbekistan and Costa Rica thus far.
“Guess which brand that is close to? Audi,” Lihong stated.
Li had made the same pricing argument on Tuesday’s call.
“Even amid these challenges, Onvo still achieved an average selling price of 240,000 yuan, achieving also significant growth year-over-year,” the founder said, adding that “in the first half of this year, in the Chinese automotive market, only eight brands managed to achieve increase both in their sales volume as well as the average selling price, where Onvo is one of these eight brands.”
According to the founder and Chief Executive, Onvo’s average selling price now exceeds that of some German luxury marques.
August Figures Show the Strain
Since launch, a total of 189,997 Onvo vehicles have been delivered. The 200,000-unit milestone arrives against a backdrop of declining monthly volumes.
Onvo delivered 8,810 vehicles in August, down 46.4% from a year earlier and 13.2% below July — a third consecutive monthly decline from the brand’s 2026 high of 12,029 in May.
Onvo’s share of Nio Inc.’s monthly deliveries dropped to 24.6% from 52.5% in August 2025.
Nio Inc. delivered in total 35,836 vehicles in August, up 14.5% year on year.
The Nio premium brand accounted for 21,174 of those, rising 101.2%, while Firefly contributed 5,852 units, up 34.7%.
The group grew while its designated volume brand halved — inverting the structure the company described when it launched Onvo.
Under Li’s long-term brand-mix target of 55-35-10, Onvo is expected to carry 55% of group volume, with the Nio brand at 35% and Firefly at 10%. August’s 24.6% share sits less than half that figure.
No new Onvo models are scheduled for 2026.
Li told analysts on the first-quarter call that the brand would add new products next year, leaving its three SUVs — the L60, L80 and L90 — to carry the remaining four months.
Morgan Stanley reported in February that the brand planned two to three further models in the 150,000-to-200,000-yuan segment, targeting 8% to 10% market share.
Nio Inc. needs between 48,277 and 56,527 vehicles a month from September through December to hit Li’s full-year delivery target.
August’s 35,836 sits well below that range.
Brand Awareness
Li told analysts on Tuesday’s call that Onvo’s challenge sits squarely with visibility, not product quality.
He pointed to strong conversion rates among consumers who do encounter the brand.
“Right now, for the Onvo brand, the challenge is more about its overall brand awareness, where its current brand awareness is maybe comparable with Nio’s awareness around five to six years ago,” Li said.
Li has made the comparison repeatedly.
He first drew the parallel in late April, likening Onvo’s recognition to the Nio brand’s in 2019 — the year the parent company nearly ran out of cash before a rescue investment led by the Hefei municipal government.
He reiterated the point on the first-quarter call in May.
On Tuesday, Li outlined three actions.
First, Nio plans to raise awareness through collaborations, offline activities and engagement with targeted communities.
The company has already deployed advertising in train stations and apartment elevators, social media campaigns and a sponsorship deal with Shanghai Shenhua FC for the 2026 Chinese Super League season.
Second, the company will keep rolling out Sky Stores — multi-brand locations that house Nio, Onvo and Firefly under one roof.
Co-founder Qin said last month that more than 40 were open, with roughly 120 planned for the full year.
Third, Li said Nio will introduce new Onvo products to reach a broader family-user base, though he stressed the brand would not enter entry-level segments aggressively.
“We will still strike a balance between sales volume and also the vehicle gross margin,” he said.
Li said a gap exists in the Chinese market for a brand comparable with the upscale product lines of Toyota or Volkswagen that can serve family buyers.
“This is where we see the opportunity for Onvo to develop its awareness in that specific segment,” he said.
‘A Marathon in the Mud’
Qin struck a patient tone in Macau.
He described Onvo as being at the earliest stage of a long race, borrowing a phrase from Li.
“The auto industry is a long-distance race. In the words of our Brother Bin, it’s a marathon in the mud,” Qin noted. “For Onvo right now, we’ve only just run the first 100 meters of that marathon, yet many friends already want to guess the final result. I think that’s still too early.”
He added: “I believe Onvo will definitely win the marathon in the market segment it competes in.”
Still, Qin did not shy from the gap between ambition and results. “Of course, I have to be frank: personally I’m still not satisfied. We should have pushed harder and achieved more,” he said.
