NIO Inc.’s shares are climbing higher on Thursday, fueled by the company’s aggressive expansion in the Chinese electric vehicle (EV) market with its Onvo brand.
Onvo, which is taking aim at Tesla, boasts an impressive team with 180 store managers in China, with 40% coming from Tesla, Inc. and 27% from Li Auto. This move highlights Onvo’s ambition to compete directly with established players.
The rivalry between NIO and Tesla is nothing new. Earlier this year, NIO reportedly secured a deal with BYD Co., Ltd. to source batteries for a new EV brand focused on a lower price point, targeting competition with Tesla.
Onvo’s recent launch of the L60 model further underscores its competitive strategy. The L60, first revealed in May, was available for pre-orders at a promotional price of RMB219,900, which includes the battery. This price point is significantly lower than the starting price of Tesla’s Model Y in China.
The company is building momentum. Onvo opened its first 105 stores in China on September 1st, and the total number of stores has now reached 120. This rapid expansion is a clear signal of Onvo’s commitment to capturing market share.
Adding to the excitement, Onvo’s head of user and service operations, Xia Qinghua, recently completed a 20,000-kilometer road trip across China in an L60. This ambitious journey, which began shortly after the first production L60 was completed, highlights the vehicle’s capabilities and serves as a powerful marketing tool.
The combination of Onvo’s aggressive pricing, expanding store network, and strong leadership team puts the brand in a prime position to challenge Tesla and other industry giants in the competitive Chinese EV market.
