NIO (NIO)'s new Onvo L60, which starts at just $21,200, is paving the way for a “brand revival,” according to Deutsche Bank analyst Wang Bin. The new low-cost electric SUV is important as NIO takes on market leaders such as Tesla and BYD.
NIO's new low-cost electric SUV is bright at first glance
On Thursday, NIO launched the Onvo L60, officially launching its new mass-market model. The electric SUV is considered a real challenger to the best-selling Tesla Model Y.
The L60 starts at just 149,900 yuan, or about $21,200, for the battery rental model, which includes a monthly subscription fee.
For those who choose the battery subscription model, the rental is $85 (599 yuan) for 60 kWh and $125 (899 yuan) for 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 its successful launch, Onvo L60 has already attracted the attention of analysts.
“We believe the success of the Onvo L60 SUV paves the way for the revival of the Nio brand,” 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, which offers high performance at low cost.
The note added that the technology platform (NT 3.0) will support all new Onvo models, unlocking future savings through a cost-competitive supply chain.
Setting a new standard
NIO's new low-cost electric SUV and NT 3.0 platform enable a long-term vehicle margin improvement approach. Wang's team said “25% of the NIO product and 15% of the Onvo product” as a guideline.
The Onvo L60 (4,828 mm long x 1,930 mm wide x 1,616 mm long) is slightly larger than Tesla's Model Y (4,750 mm long x 1,921 mm wide x 1,624 mm long), but its longer wheelbase (2,950 mm vs. 2,890 mm) provides more internal space.
NIO says the L60 sets a “new standard for family cars” as a long-range, highly efficient electric SUV at a competitive price.
According to NIO, the L60 “uses an industry-leading CLTC of 12.1kWh/100km,” better than the Model Y at 12.5 kWh/100km.
The interior has a similar design to the Model Y, with a 17.3″ infotainment screen at the center of the unusual interior. Rear passengers also get an 8″ screen for entertainment.
Wang's team said that NIO's new electric SUV offers a better exterior design, more interior space, at a lower cost.
| NIO Onvo L60 vs Tesla Model Y breakers | Distance (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) |
The retailer's initial response 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 in four months.
NIO stock is up 32% in the past month as momentum builds. However, NIO shares are still down 36% in 2024 and 39% over the past 12 months.
Source: CnEPPost
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