Written by Cláudio Afonso | LinkedIn | X
Nio’s Founder and CEO, William Li, anticipates direct competition between Nio‘s subbrand Onvo and Li Auto, a Chinese hybrid manufacturer set to launch its second fully electric model in the first half of next year.
In an interview with Yicai, Li noted the overlap in pricing between Onvo and Li Auto‘s offerings, suggesting an inevitable rivalry. Both brands have consistently targeted the family market since their inception.
“Both Onvo and Beijing-based Li Auto target the personal use auto market and their prices overlap. I believe there will definitely be competition between the pair,” said William Li.
Li highlighted Nio‘s strategic focus on targeting both mass mainstream and premium markets.
“This approach will capitalize on Nio’s strengths in systematization, generate efficiency gains from early-stage R&D and infrastructure investments, and drive economies of scale,” the chief executive said.
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Li Auto’s upcoming electric crossover, its second fully electric model, has been spotted in China over the last months and it is rumored that will utilize 800V architecture while supporting 5C charging.
The company had initially planned to unveil three electric SUVs this year. However, the chief executive announced that Li Auto will not launch any electric SUV models until the first half of next year.
“Enough charging stations and enough incremental display spots (in our retail shops) are two critical and necessary conditions for selling our BEV SUV product,” Li Auto CEO said in the earnings conference call on Monday.
Earlier this week, Xiaomi CEO Lei Jun, along with top executives, visited Nio’s Shanghai headquarters to inspect the newly launched Onvo L60 SUV. Priced $4,000 lower than Tesla’s Model Y, the L60 drew Lei Jun’s interest as Xiaomi gears up for its second model release by 2025.
During discussions, Nio CEO William Li expressed confidence in the Onvo L60’s market prospects. “We are confident that the Onvo L60 will not only meet but exceed consumer expectations, offering a compelling alternative to existing offerings in the market,” Li stated.
The Onvo L60 features advanced technology, including a 900V high-voltage architecture, 92.3% CLTC energy efficiency, and a drag coefficient of 0.229, the lowest for a production SUV.
Written by Cláudio Afonso | LinkedIn | X
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