From CNBC: 2024-06-06 23:57:22

Chinese electric car company Nio launched its lower-cost brand Onvo in Shanghai. Nio plans to expand to the Middle East and start shipping its lowest-cost brand, Firefly, in 2025. The company saw record deliveries in May and aims to enter the UAE market by year-end. Rival BYD also targets the Middle East market.

Nio faces competition in the electric car market, leading to the launch of the lower-priced Onvo brand. The Onvo L60 SUV, priced at 219,900 yuan, undercuts Tesla’s Model Y. Nomura analysts expect Onvo’s success to impact Nio’s outlook. A lower-priced brand, Firefly, priced between 100,000 to 200,000 yuan, is also in development.

Onvo plans to open 100 stores in China with an investment of 1-2 million yuan each. Nio understands the intense competition in Onvo’s segment and aims to balance sales volume and margin. The company aims for Onvo to break even with 20,000-30,000 vehicle sales a month. Nio’s power subsidiary is set to receive fresh investment.

Nio announced plans for a lower-priced brand called Onvo and an even cheaper brand, Firefly. Onvo L60 SUV will compete with Tesla’s Model Y, priced lower at 219,900 yuan with deliveries starting in September. Firefly will have a broader price range between 100,000 to 200,000 yuan. Nio plans to expand to the Middle East.

Read more: Chinese electric car company Nio to enter UAE Middle East this year