ONVO steps out of NIO’s shadow

ONVO is trying to move beyond the perception that it is merely a cheaper NIO, as stronger sales, new models and tighter group integration turn the family-focused EV brand into a key test of NIO’s multi-brand strategy 

The updated ONVO L60 SUV

Speaking in June 2026, ONVO President Shen Fei pushed back against the market perception that "people only buy ONVO because they can't afford NIO”. He described that perception as an early misunderstanding. ONVO’s buyers, he argued, are not simply trading down from NIO. Many are middle managers with adequate purchasing power who are looking for a car that fits family use, rather than a badge that signals premium status.

The distinction matters because ONVO was created to give NIO a route into China’s mainstream family EV market, especially the 200,000 to 300,000 yuan price band. Its first model, the L60, went on sale in September 2024 from 206,900 yuan and quickly showed promise, passing 10,000 deliveries by its third full month on the market.

A FAST START, THEN A SUDDEN STALL

That early momentum faded quickly. ONVO delivered 5,912 vehicles in January 2025, 4,049 in February and 4,820 in March—well short of the 20,000-unit monthly target set by former President Ai Tiecheng.

The first problem was insufficient production capacity. Production capacity failed to keep up with demand, and many January orders could not be delivered before the Lunar New Year subsidy deadline. NIO Chairman William Li later told investors that 50% to 60% of ONVO’s lost sales were the result of vehicles not being delivered quickly enough.

But production capacity was only part of the problem. ONVO was also struggling with how customers saw it. For some, the brand looked less like a carefully segmented family-car business and more like NIO’s attempt to move downmarket. Some early owners complained online that, despite the launch message of “one big family,” they felt like “second-class citizens” after delivery.

NIO MOVES TO REGAIN CONTROL

By April 2025, NIO had changed the leadership. Ai stepped down, and Shen, previously head of NIO’s energy business, took over ONVO. The handover came alongside a broader internal reset. NIO merged delivery channels for the NIO and ONVO brands in February, then brought ONVO and Firefly more fully back under group management by May, including R&D, sales and service functions.

Shen’s bigger task, however, has been narrative control. He has compared NIO and ONVO to pairings such as Audi and Volkswagen, or Lexus and Toyota: related brands that share technology and systems but address different customers. In that framing, NIO remains the premium name, while ONVO is built for families seeking space, practicality and value in the mainstream market.

THE PRODUCT PUSH BEGINS TO PAY OFF

ONVO has since moved quickly to fill out its line-up. The 2026 L90 arrived in April 2026, followed in May by the L80, positioned as a value flagship in the large five-seat SUV segment. A new L60 followed in June, giving the brand a three-model matrix across the L60, L80 and L90.

The sales recovery has been visible. ONVO delivered 12,029 vehicles in May 2026, up 91.5% from a year earlier and 124.8% from the previous month. NIO’s group deliveries reached 37,705 vehicles in the same month, a year-on-year increase of 62.3%. From the start of deliveries through April 2026, ONVO’s cumulative volume approached 150,000 units; in 2025, its first full sales year, it delivered more than 100,000 vehicles.

Shen points to three reasons for the rebound: access to NIO’s battery-swapping network, which he says rivals would need two or three years to replicate; the advantages of a native EV platform in space, comfort, efficiency and safety; and the promise of a “flagship-level experience” in a family car priced between 200,000 and 300,000 yuan.

A TEST CASE FOR NIO’S BRAND ARCHITECTURE

For NIO, ONVO is not just another sub-brand. It is a test of whether the company can stretch beyond its premium roots without weakening the parent brand. Since 2021, NIO has been building a three-tier structure: NIO for the premium segment, ONVO for mainstream family buyers and Firefly for entry-level and more personalized niches.

The numbers suggest the strategy is beginning to matter. In 2025, NIO delivered 326,028 vehicles, up 46.9% to a record high. The main NIO brand contributed 178,806 units, ONVO 107,808 and Firefly 39,414. In the first quarter of 2026, NIO posted an operating profit of 66.8 million yuan, its second consecutive profitable quarter, while ONVO accounted for 31.9% of group deliveries in May.

THE RISKS HAVE NOT GONE AWAY

Still, the turnaround is not complete. Bringing ONVO and Firefly back under tighter group control may improve efficiency, but it also raises the stakes for coordination. NIO must keep price bands from overlapping too much, protect each brand’s identity and avoid leaving customers confused about what each name stands for. For now, ONVO’s message is clear: it wants to be judged not as a cheaper NIO, but as a family EV brand built on NIO technology. Whether buyers continue to accept that distinction will help determine how far NIO’s multi-brand strategy can go.