EV maker Nio aims to launch one new model a year

Nio said it would have a second Onvo model targeting larger families coming up next. — Reuters

SHANGHAI: Chinese electric vehicle (EV) maker Nio says it will launch one new model per year under its lower-priced Onvo brand and price them similarly to petrol vehicles, as the firm expands its lineup to family cars in the country’s overcrowded auto market.

Nio executives were speaking a day after the company unveiled the Onvo L60 SUV with a sticker price starting from 219,900 yuan, 12% below the price of Tesla’s Model Y which starts at 249,900 yuan in China.

Nio said yesterday it would have a second Onvo model targeting larger families coming up next and expected the newly launched brand to positively contribute to its overall profitability when monthly sales reach 20,000 units.

“China has 110 auto brands...and it’s now already consolidated to 20-30 active players,” Nio chief executive William Li said.

“The consolidation will continue but will not be very severe.”

EV makers in China, the world’s biggest auto market, are grappling with rising competition after more than a year of bruising price war amid weakening consumer demand. Many players are now shifting their focus to overseas markets.

Nio, which has a third affordable brand under development, is among the smaller players struggling to turn profitable.

Its sales account for around 3% of China’s EV market by volume and the company has been focusing on cost cuts to stay afloat.

The company said the Onvo L60 sacrificed acceleration speed that many EV models have focused on and instead prioritises safety and comfort. — Reuters