Is Nios Multi-Brand strategy realized with Onvo in 2025?

NIO Inc. In May 2024, Nio introduced its Smart Electric Vehicle Sub-Brand, Onvo, to start the company's transition to a multi-brand strategy. The first model from Onvo was officially launched on September 28, 2024 to offer an optimized owner experience and an extraordinary value.

The L60 was praised for security, spaciousness, energy efficiency and user -friendly charging experience and has strongly resonated with family customers. In the first four months of 2025, the onvo L60 was one of the three best-selling battery electric vehicles in the price range of 200,000 to 300,000 RMB. In the second quarter of 2025, the ONVO 17,081 units delivered to 14,781 vehicles that were delivered in the first quarter of 2025.

The second model of the brand, the L90, a flagship of large families -SUV, will debut in China at the end of July with deliveries on August 1, 2025. A third onvo SUV should start in the fourth quarter and complete a more comprehensive SUV portfolio for consumers of mass market.

Despite the strong product reception, the company's total sales performance did not decrease this year's expectations of the company, partly due to the amortization and other financial pressure. The management of ONVO operations and vehicle margins has proven to be difficult for the company. The most important driver of the gross vehicle margin for the onvo brand is expected to only occur in the third quarter. The company projects the 2025 vehicle margin from Onvo to approx. 15% and lower than the vehicle margin of 20% expected from the NIO brand. Nio is currently wearing a Zacks rank 3 (hold).

You can see The full list of today's Zacks #1 rank (Strong Buy) protocols here.

In the midst of slower than expected EV launch and the introduction of affordable models, competition on the EV market is increasing. Nio Onvo L60 is currently competing with TeslaTSLA Model Y and Xpeng'S XPEV G6.

The Tesla Model 3/Y reported a decline in deliveries in the second quarter due to less demand in relation to rising competition from a decline in deliveries in the second quarter. Tesla delivered in the second quarter of 2025 373,728 Model 3/Y, from 422,405 units in the corresponding quarter of 2024. NIO ONVO L60 has been a strong budget -friendly rival of Tesla Model Y.

On February 26, Xpeng presented official pictures of his updated 2025 G6 model. One of the most important competitive strengths of the G6 about rivals such as the Onvo L60 is its pricing. The Xpeng G6 580 Long Range Plus is available for less than 180,000 RMB. In comparison, the onvo L60 60 kWh rear-wheeling variant requires an advance payment of almost 150,000 RMB and a monthly battery rental fee of 599 RMB.