What?
Nio’s sub-brand Onvo has inked a deal with BYD to source batteries for its upcoming electric vehicles. BYD will provide a smaller battery pack for one version of Onvo’s new EV, while CALB will supply a larger 85 kWh battery pack. Onvo, aimed at the market price range of RMB 200,000 to 300,000, is set to launch in early-mid May with its first model, the L60.
Why does it matter?
As Nio ventures into the lower-priced market with Onvo, it signals the company’s strategy to diversify its offerings and compete in a broader market segment. By collaborating with BYD and CALB for battery supply, Nio aims to control costs and ensure price competitiveness for its new EV models. This move comes after considerations to manufacture batteries in-house were scaled back due to efficiency concerns.
How is it going to shape the future?
By leveraging batteries from multiple suppliers, including industry giants like BYD and CALB, Nio’s sub-brand Onvo is poised to make a significant impact in the electric vehicle market. With plans to introduce cost-effective models that directly compete with the likes of Tesla’s Model Y, Nio is strategically positioning itself for success in the evolving EV landscape. The partnership with BYD and CALB underscores Nio’s commitment to innovation and adaptability in meeting the demands of a diverse consumer base.
Source: https://cnevpost.com/2024/05/07/nio-onvo-to-use-byd-batteries-report/