Hold on tight, because Nio's sub-brand, Onvo, is making waves! They're about to hit a major milestone: delivering their 100,000th vehicle. But here's where it gets interesting... how quickly did they reach this number and what does it say about the demand for more accessible EVs? Let's dive in.
Onvo is expected to roll out its 100,000th mass-produced vehicle this weekend, a significant achievement for the electric vehicle (EV) brand owned by Nio Inc. (NYSE: NIO), a company that has been making significant strides in the EV market. This milestone isn't just a number; it represents Onvo's rapid growth and increasing acceptance in the competitive EV landscape.
According to the announcement on their mobile app, this 100,000th delivery will also bring their total deliveries for the month to approximately 9,721 units. To put this in perspective, by the end of September, Onvo had already delivered a cumulative total of 90,279 vehicles, a mix of its two models, the L60 and L90 SUVs.
Last month alone, Onvo delivered a substantial 15,246 vehicles. And this is the part most people miss... that number accounted for a whopping 43.87 percent of Nio Inc's total monthly deliveries of 34,749 units, according to data compiled by CnEVPost. That's a huge chunk of Nio's overall performance being driven by this relatively new sub-brand. What does this say about the parent brand and its future strategy?
Breaking down September's numbers further, Onvo's first model, the L60 electric SUV, saw 4,249 deliveries, while its larger sibling, the L90 SUV, delivered an impressive 10,997 units. It's clear that both models are finding their niche in the market, but the L90 seems to be gaining traction at a faster pace.
Nio officially launched the Onvo brand on May 15, 2024. The strategic intent behind launching Onvo was to penetrate the mass market, a segment Nio hadn't fully explored while focusing on the premium EV sector with its main brand. Think of it like this: Nio wanted to offer a more accessible option to a wider range of customers, without diluting the luxury appeal of its core brand.
The five-seat L60 SUV, Onvo's debut model, was officially launched on September 19, 2024, and was directly positioned as a competitor to Tesla's (NASDAQ: TSLA) Model Y. This was a bold move, directly challenging the market leader in a highly competitive segment. Could this be seen as a threat?
Interestingly, on September 19 of this year, marking the L60's one-year anniversary, Onvo launched an updated version of the L60 with unchanged pricing. Deliveries are slated to begin later this month. This refresh highlights Onvo's commitment to continuous improvement and maintaining a competitive edge. The updated L60 retains its 60-kWh standard-range battery pack, with a base price remaining at RMB 206,900 (approximately $29,030). Under the BaaS (Battery as a Service) model, the starting price remains at RMB 149,900, with battery rental fees starting at RMB 599 per month.
What makes the updated L60 even more compelling are the enhancements in energy efficiency, range, smart cockpit features, and overall comfort. These improvements aim to address customer feedback and further solidify the L60's position in the market. As of the end of September, cumulative L60 deliveries reached 68,707 units.
Onvo expanded its lineup with the launch of the L90 large SUV on July 31, offering both six-seat and seven-seat configurations. Deliveries of the L90 commenced on August 1, with 10,575 and 10,997 units delivered in August and September respectively. The L90 comes standard with an 85-kWh long-range battery pack and a starting price of RMB 265,800 (including the battery pack), a price point considered quite competitive in its segment. Alternatively, under the BaaS plan, the Onvo L90 starts at RMB 179,800 with a monthly battery rental fee of RMB 899.
So, here's the question: Is Onvo's rapid growth a sign that the mass market is finally ready for EVs? Or is it simply capitalizing on pent-up demand and brand recognition from its parent company, Nio? What impact will this have on established players like Tesla? Share your thoughts and predictions in the comments below. Let's discuss!
