NIO (NIO) eyes rapid overseas expansion as low-cost Onvo EV brand carves out a new market
NIO (NYSE: NIO) plans to expand into 25 overseas markets by the end of next year. With its new lower-cost Onvo brand already driving demand, NIO expects to play a much bigger role in the global EV market. Will we see NIO’s electric vehicles launch in the US? Europe?
After its sixth straight month, with over 20,000 vehicles sold in October, NIO appears to be gaining traction.
NIO-branded vehicles accounted for 16,657 of the nearly 21,000 models sold last month, while its new mainstream Onvo brand contributed 4,319 in its first full sales month.
After launching the Onvo L60 at the end of September, NIO’s new midsize electric SUV is already showing promise. Starting at just over $21,000 (149,900 yuan), the L60 is widely compared to Tesla’s top-selling Model Y.
The Onvo electric SUV is cheaper than the Model Y in China, which starts at around $35,000 (249,900 yuan). However, the $21K L60 price is if you rent the battery, which includes an $85 (599 yuan) or $125 (899 yuan) monthly fee, depending on the battery’s size.
Even with the battery included, NIO Onvo L60 prices still undercut the Tesla Model Y, starting at $29,300 (206,900 yuan).
At 4,828 mm long, 1,930 mm wide, and 1,616 mm tall, NIO’s electric SUV is a direct rival to Tesla’s top seller (4,750 mm long x 1,921 mm wide x 1,624 mm tall).
| 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) |
NIO wants more to gain overseas market share
In May 2021, NIO announced it was taking the brand global. By October, the Chinese EV maker opened its first overseas showroom in Norway.
Although the company unveiled plans to enter over 25 overseas markets during NIO Day in December 2021, the expansion has largely stalled.
Over the past few years, NIO has focused on its existing overseas markets, including Norway, Germany, the Netherlands, Sweden, and Denmark, but that will soon change.
According to NIO’s president and co-founder, Qin Lihong, the company is standing by its 2021 target.
In a recent interview with Chinese media CGTN (via CnEVPost), Qin said, “I hope that we can expand to up to 25 different countries or regions by the end of next year.”
NIO’s president added, “We want to enter more than 90 percent of the market presence” in the next five to ten years.
Although no specific markets were mentioned, local media reports suggest they will include major auto hubs like the US, Western Europe, Australia, and New Zealand. However, with tighter regulations on EV imports from China expected, the US could be a hard market for NIO to compete.
With NIO’s new Onvo L60 gaining momentum, the low-cost brand could play a significant role as the EV maker expands overseas.
According to NIO Onvo’s president, Alan Ai (via CnEVPost), over 7,000 L60 models have been delivered as of November 14. By March 2025, Onvo is expected to deliver over 20,000 models in a single month.
Onvo is also launching its second EV next year, a six or seven-seat electric SUV. NIO’s CEO William Li said the new Onvo model will be “much more competitive” than the L60.
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A new, all electric Peterbilt 579EV is in-service at Honda’s Lincoln, Alabama assembly plant, where it’s busy transporting newly-built Honda cars from the plant to a nearby railhead for shipment to dealers across the country.
Part of a pilot program between Honda, Alabama Power, and Virginia Transportation Corp., the new electric semi truck will help stakeholders gather data about the practicality and performance of the battery-powered Pete and use it to generate case studies for broader electrification initiatives. Other supporters of the pilot project include the Alabama Clean Fuels Coalition and, of course, Peterbilt.
“We remain committed to delivering for our customers and the environment,” offered Leo Doire, owner and CEO of Virginia Transportation Corp. “Our new Peterbilt 579EV model will be tested to determine how well it performs against the high productivity demands of our operations. The partners we have at the table will help us maximize this opportunity and prepare to scale up if we get the results we are hoping for.”
The truck itself has been spec’ed to be perfect for the kind of short haul and drayage applications Honda has in mind. This particular Peterbilt 579EV is fitted with PACCAR’s 400 kWh battery and a 670 hp electric motor good for an impressive 2,050 lb-ft of peak torque at 0 rpm.
The truck offers 150 miles of operating range and can be charged in about 3 hours on a 120 kW charger installed specifically for that purpose. A charger, it should be noted, that was partially paid for by Alabama Power.
“Alabama Power’s ‘Make Ready’ program provides businesses with valuable rebates to help reduce the upfront costs of installing EV infrastructure,” says Alabama Power Electric Transportation Manager Hasin Gandhakwala. “We are committed to partnering with customers who are exploring state and federal grant opportunities. Alabama Power is dedicated to advancing EV technologies to better serve the needs of our customers.”
The electric semi is a continuation of a decarbonization project Honda initiated in 2011, when the company recruited Virginia Transport Corp. to help find ways to reduce emissions at its Alabama facilities. VTC’s efforts have led to changes that displaced more than 475,000 gallons of diesel in 2023 alone.
Electrek’s Take
With the big Pete’s 82,000 lb. GVWR and 150 miles of range between charging sessions, it seems like these guys will be making a lot of back-and-forth runs between the Honda plant and the CSX terminal to me. Here’s hoping they see the benefits of electrifying the rest of their vehicle transport fleets somewhat sooner than later.
SOURCE | IMAGES: Alabama Power.
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On today’s episode of Quick Charge, we’ve got big solar breaking ground all over, despite the incoming administration’s supposed lack of love for home-grown clean energy. Our guests today walk us through home solar, energy storage, and more.
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Read more: Saldivar’s Trucking: first owner-operator to deploy Volvo VNR Electric semi.
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Tesla is now using ‘Tesla Electric’, its electric utility service in Texas, to help sell cars with a new incentive.
After gaining experience through its virtual power plants (VPPs), Tesla took things a step further with the launch of “Tesla Electric” back in 2022.
Instead of reacting to specific “events” and providing services to your local electric utilities, as Tesla Powerwall owners have done in VPPs in California, Australia, and a few other markets, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.
The company is essentially becoming an energy retailer.
Tesla Electric is currently only available to Powerwall owners in Texas and the UK, but the company has plans to expand its products through this new division.
The company has been growing its Tesla Electric userbase in Texas and now it plans to use it to help sell cars.
Tesla has two different plans under the program:
| Feature | Tesla Electric Fixed Plan | Tesla Electric Dynamic Plan |
|---|---|---|
| Pricing Structure | Competitive fixed rate for electricity, with a discounted rate during low-cost hours. | Competitive variable rate, with higher rates during peak demand periods. |
| Contract Term | 12-month commitment. | Month-to-month flexibility. |
| Unlimited Vehicle Charging | Available for an additional $15/month per vehicle, allowing unlimited charging. | Available for an additional $25/month per vehicle, allowing unlimited charging. |
| Powerwall Credits | Earn $400 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with Tesla managing the Powerwall to share energy with the grid when needed. | Earn $120 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with the customer managing the Powerwall to optimize earnings. |
| Energy Sharing with Grid | Sell energy back to the grid at a fixed rate per kWh. | Sell energy back to the grid at 90% of the real-time market price per kWh. |
The first one enable you to charge your electric car for just $15 a month.
With this new incentive, Tesla is brining that down to $5 a month for a year for people who take delivery by the end of the year:
Get $5/mo Unlimited Overnight Charging With Tesla
To get unlimited overnight charging for $5 per month per vehicle for a full year, you must complete the following steps by December 31, 2024:
- Order and take delivery of a new Tesla vehicle
- Sign up for the Tesla Electric Fixed Plan
To be eligible, you need to live in an area of Texas that allows you to choose your electricity provider, be a new Tesla Electric member and take delivery of a new Tesla vehicle. Promotion is subject to change at any time.
This appear to be part of Tesla’s effort to deliver a record number of more than 515,000 vehicles in Q4 in order for its annual deliveries not to be down for the full year.
ver the last few weeks, we have been reporting on a series of sale incentives that Tesla has put in place to make sure it has the demand to achieve this record quarter.
In Europe, it includes a year of free Supercharging and heavy discounts.
In the US, there are also good inventory discounts, 3 months of free Supercharger and FSD, FSD transfer, and more.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates.
But it’s the first time that Tesla is using such a targeted incentive, at the state level, and using its Tesla Electric program.
It’s interesting.
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