NIO Inc. NIO launched its good electrical car sub-brand, ONVO, in Could 2024, to kick-start the corporate’s transition right into a multi-brand technique. Designed to ship an optimized possession expertise and distinctive worth, ONVO’s first mannequin, the L60, formally entered the market on Sept. 28, 2024.
Praised for its security, spaciousness, class-leading vitality effectivity and user-friendly charging expertise, the L60 has resonated strongly with household clients. Within the first 4 months of 2025, the ONVO L60 ranked among the many high three best-selling battery electrical automobiles within the RMB 200,000-300,000 worth vary. Within the second quarter of 2025, the ONVO model delivered 17,081 items, up from 14,781 automobiles delivered within the first quarter of 2025.
The model’s second mannequin, the L90, a flagship giant household SUV, will debut on the finish of July, with deliveries commencing on Aug. 1, 2025, in China. A 3rd ONVO SUV is ready to launch within the fourth quarter, finishing a extra complete SUV portfolio aimed toward mass-market shoppers.
Regardless of robust product reception, ONVO’s total gross sales efficiency this 12 months has fallen in need of the corporate’s expectations, partly on account of amortization and different monetary pressures. Managing ONVO’s operations and car margins has confirmed difficult for the corporate. The important thing driver of gross car margin for the ONVO model isn’t anticipated to materialize till the third quarter. The corporate initiatives ONVO’s 2025 car margin to be roughly 15%, decrease than the car margin of 20% anticipated from the NIO model. NIO carries a Zacks Rank #3 (Maintain) at current.
You’ll be able to see the entire record of at present’s Zacks #1 Rank (Robust Purchase) shares right here.
Amid slower-than-expected EV adoption and the launch of inexpensive fashions, competitors within the EV market is intensifying. NIO ONVO L60 is at the moment competing with Tesla‘s TSLA Mannequin Y and XPeng‘s XPEV G6.
Tesla Mannequin 3/Y has reported a year-over-year decline in second-quarter deliveries on account of decrease demand amid rising competitors. Tesla delivered 373,728 Mannequin 3/Y within the second quarter of 2025, down from 422,405 items within the corresponding quarter of 2024. Priced at $14,000 much less, NIO ONVO L60 has emerged as a powerful budget-friendly rival of Tesla Mannequin Y.
On Feb. 26, XPeng unveiled official photos of its refreshed 2025 G6 mannequin. One of many G6’s key aggressive strengths over rivals just like the ONVO L60 is its pricing. The XPeng G6 580 Lengthy Vary Plus is obtainable for below 180,000 RMB. As compared, the ONVO L60 60kWh rear-wheel-drive variant requires an upfront fee of practically 150,000 RMB, plus a month-to-month battery rental price of 599 RMB.
