What?
Nio’s founder, William Li, and Onvo’s president, Alan Ai, recently announced plans for Onvo’s second model – a larger SUV seating six or seven people. The Onvo brand aims to have 100 directly operated stores in operation by the time the new model, Onvo L60, hits the market in September. Despite similarities with the Nio brand, Onvo will not have Nio Houses for buyers and is considering franchising to expand its store network efficiently. Onvo targets second, third, and fourth-tier cities to cater to a broader market and accelerate the establishment of battery swap stations for user convenience.
Why does it matter?
By focusing on a larger SUV model, Onvo aims to meet the needs of families and expand its market reach beyond first-tier cities. The brand’s strategic approach includes cost reductions by streamlining features like using a single motor, employing fewer intelligent driving chips, eliminating Lidar, and downsizing the base battery pack. This cost-effective strategy aligns with the goal of selling more cars without compromising quality. The introduction of a battery subscription option for the Onvo L60 at a competitive price point has garnered overwhelming demand, exceeding initial expectations.
How is it going to shape the future?
Nio’s expansion into the Onvo brand signals a strategic move to diversify offerings and cater to various customer segments, similar to European car groups like Volkswagen. The upcoming third brand, Firefly, suggests a continued commitment to innovation and market adaptation. With advanced features such as the ‘Way Up’ design concept, the new L60 model promises cutting-edge technology, including high-definition cameras, 4D imaging radar, and a vision-based intelligent driving system. These advancements, coupled with a user-friendly interior design featuring a large control screen and head-up display, position Onvo as a competitive player in the electric vehicle market.
In conclusion, Nio’s reveal of Onvo’s new 6/7-seater SUV plan signifies a strategic step towards market expansion, cost-efficient production, and innovative technology integration. The brand’s emphasis on meeting diverse customer needs and enhancing user experience hints at a promising future for Onvo in the electric vehicle industry.
Source: https://carnewschina.com/2024/05/17/nio-founder-talks-plans-onvos-second-car-to-be-larger-suv/