Summary
Onvo, the new affordable sub-brand of Nio in Europe
Nio, already present in some European countries, plans to launch its economic sub-brand, Onvo, in the UK with the L60 model. This electric car positions itself as a direct competitor to the Tesla Model Y. Chinese automotive brands are increasingly establishing themselves in Europe, which bothers European regulators, who have intensified customs duties and invested massively to encourage local manufacturing of vehicles and batteries, in order to counter this competition.
Expansion of Chinese brands despite taxes
Nevertheless, this does not discourage Chinese companies, who perceive Europe as a promising market. Among them are BYD, MG, Xpeng, and Nio, already active in Germany and Scandinavia. With the rise in taxes, these brands take the risk of having to increase their prices.
Launch of Onvo in the UK
While Nio plans to expand its activities, its sub-brand Onvo, recently created, offers more affordable models, explicitly targeting the European market. The L60 coupe SUV, the brand’s first model, was unveiled last summer and is expected to be marketed in early 2025 in the UK. This choice is strategic, as high customs duties do not apply to the UK due to its position outside the European Union.
Features and ambitions of the L60
The Onvo L60 offers several versions with batteries ranging from 60 to 150 kWh. The maximum announced range is over 1,000 kilometers according to the Chinese cycle, or approximately 850 kilometers according to the European WLTP cycle. The vehicles will have access to Nio’s battery swap stations, allowing for rapid recharging. The initial price in China is 149,900 yuan (approximately 19,700 euros), but it could be adjusted upward in Europe to cover additional costs.
Growth objective
Nio’s president, Qin Lihong, has expressed the wish to enter 25 countries or regions by the end of 2025, which could include some new European markets. France could be an option, despite the absence of ecological bonuses for Chinese cars, a factor that does not seem to hinder their expansion. The Onvo L60 model therefore has an attractive positioning to compete with established brands like Tesla.