NIO’s (NIO) new Onvo L60, starting at just $21,200, paves the way for a “brand revival,” according to Deutsche Bank analyst Wang Bin’s team. The new low-cost electric SUV is crucial as NIO takes aim at market leaders like Tesla and BYD.
NIO’s new low-cost electric SUV shines in debut
On Thursday, NIO launched the Onvo L60, officially kicking off its new mass-market brand. The electric SUV is considered a true challenger to Tesla’s top-selling Model Y.
The L60 starts at just 149,900 yuan, or around $21,200, for the battery rental model, which includes a monthly subscription fee.
For those who choose the battery subscription model, rentals are $85 (599 yuan) for the 60 kWh and $125 (899 yuan) for the 85 kWh battery per month.
With the battery pack included, NIO’s new electric SUV starts at $26,300 (206,900 yuan), still cheaper than the Model Y, which starts at $34,600 (249,900 yuan) in China. After a successful launch, the Onvo L60 has already garnered the attention of analysts.
“We believe the Onvo L60 SUV’s success paves the way for a Nio brand revival,” Wang’s team wrote in a note to investors on Friday.
NIO’s L60 is the first EV based on its new NT 3.0 platform, offering higher performance at a lower cost.
The note added that the (NT 3.0) tech platform will underpin all new Onvo models, unlocking future savings with a cost-competitive supply chain.
Setting the new standard
NIO’s new low-cost electric SUV and NT 3.0 platform enable a path for long-term vehicle gross margin improvement. Wang’s team said “25% for the NIO brand and 15% for the Onvo brand” as guidance.
The Onvo L60 (4,828 mm long x 1,930 mm wide x 1,616 mm tall) is slightly bigger than Tesla’s Model Y (4,750 mm long x 1,921 mm wide x 1,624 mm tall), but its longer wheelbase (2,950 mm vs. 2,890 mm) provides more interior space.
NIO claims the L60 sets the “new standard for family cars” as a long-range, highly efficient electric SUV at a competitive price.
According to NIO, the L60 has “industry-leading ultra-low CLTC energy consumption of 12.1kWh/100km,” better than the Model Y at 12.5 kWh/100km.
The interior features a Model Y-like design, with the 17.3″ infotainment screen at the center of an otherwise minimalistic interior. Rear passengers also get an 8″ entertainment screen.
Wang’s team said NIO’s new electric SUV offers a better exterior design, more interior space, at a lower cost.
| NIO Onvo L60 vs Tesla Model Y trims | Range (CLTC) | Starting Price |
| NIO Onvo L60 (Battery rental) | 555 km (341 mi) 730 km (454 mi) | 149,900 yuan ($21,200) |
| NIO Onvo L60 (60 kWh) | 555 km (341 mi) | 206,900 yuan ($29,300) |
| NIO Onvo L60 (85 kWh) | 730 km (454 mi) | 235,900 yuan ($33,400) |
| NIO Onvo L60 (150 kWh) | +1,000 km (+621 mi) | TBD |
| Tesla Model Y RWD | 554 km (344 mi) | 249,900 yuan ($34,600) |
| Tesla Model Y AWD Long Range | 688 km (427 mi) | 290,900 yuan ($40,300) |
| Tesla Model Y AWD Performance | 615 km (382 mi) | 354,900 yuan ($49,100) |
Initial dealer feedback has been “very strong,” according to the note. As a result, Wang’s team increased its monthly delivery guidance to 10,000 from 8,000.
With 20,176 vehicles delivered last month, NIO has now crossed the 20K sales mark for four months.
NIO’s stock is up 32% over the past month as momentum picks up. However, NIO shares are still down 36% in 2024 and 39% over the past 12 months.
Source: CnEVPost
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