Written by Cláudio Afonso | LinkedIn | X
Alan Ai, head of Nio’s mass-market sub-brand Onvo, has stepped down as the family-focused marque continues to struggle with weak demand for its debut SUV and a wave of canceled orders at the end of 2024.
Ai had previously pledged to resign if Onvo failed to meet aggressive delivery targets of 10,000 units in December, 16,000 in January, and 20,000 in March. At the time, he expressed confidence that the brand’s L60 model would outperform the ramp-up of Xiaomi’s SU7 sedan.
Launched in late September, the L60 was meant to hit the 20,000 monthly unit milestone in its sixth month on the market—one month ahead of Xiaomi’s pace. While Onvo exceeded its first goal with more than 10,000 deliveries in December, volumes fell sharply to 5,912 units in January and 4,049 in February.
As reported Tuesday, March deliveries rose 19% from the prior month to 4,820 units—well below the 20,000-unit target and only a quarter of Ai’s original projection.
Despite the underperformance, Ai initially resisted stepping down, saying in mid-March that he remained committed to the brand. “I’ve thought about this a lot. A fragile ego is the last thing Onvo needs. I take criticism as motivation and aim to improve,” he said.
“It would be easy to walk away, but that would be quitting halfway. Onvo is like my own child—I built it from scratch. I won’t give up.”
Missed Expectations
Earlier this month, Nio founder and Chief Executive Officer William Li acknowledged that Onvo’s sales had fallen short in the first quarter of 2025.
“The sales performance starting this year didn’t meet our expectations,” Li said, noting the company had “reviewed the comprehensive reasons and causes for its performance.”
He cited four contributing factors: limited brand awareness, inexperienced store personnel, challenges with battery swap infrastructure at Nio stations, and targeted negative publicity on Chinese social media.
Alan Ai will be replaced by Shen Fei, Nio’s Vice President of its Power unit which focuses battery swapping and charging business.
New Model Incoming
Nio is now banking on a stronger showing from its next Onvo model, the L90, which will debut at the Shanghai Auto Show later this month. The new model follows the L60, a five-seat SUV positioned to rival Tesla’s Model Y.
The company is under increasing pressure to prove that the Onvo brand can gain traction in China’s crowded family EV segment.
Nio delivered 15,039 vehicles across all brands in March, a 26.9% increase from a year earlier. Total deliveries for the first quarter reached 42,094 units, up 40.1% from the same period last year and in line with the company’s previously issued guidance.
Below is the translation of Alan Ai’s statement in the Onvo app.
“Dear Onvo friends, hello! Starting today, I will no longer serve as the CEO of Onvo. I’m writing this WeChat post to bid farewell to everyone.
Choosing to leave Onvo is one of the most difficult decisions I’ve ever made, but it is a necessary one.
Four years ago, I joined Onvo with the dream of building a Chinese automotive brand that could go global, and from scratch, we built the Onvo brand. Thanks to the tireless efforts of the entire team, we launched our first product.
I want to thank the more than 35,500 Onvo users for their support of a brand that was still in its infancy. Because of Onvo, I met many passionate Onvo fans, friends who love life—these are the greatest treasures in my life. Thank you all for your trust!
At the same time, I must admit that during a certain period in the past, we failed to achieve matching sales for what was a very competitive vehicle. There were many shortcomings in our marketing efforts. As the team leader, I exposed many weaknesses and let everyone down. I am deeply sorry and must take responsibility for this.
What Onvo needs most for its next stage is the courage to face challenges head-on, bold and lawful action, and agile, precise adaptation to change. I deeply understand that although there may still be many regrets, it is time to step away. Although I’m no longer part of the Onvo team, I will always be Onvo’s most loyal early user, forever caring for and loving this brand that carries my dream, and I’ll continue to work with everyone to support Onvo in finding a path toward growth.
We met once, and we’ll meet again. Though I’m leaving Onvo, my heart will remain with it. Thank you once again for your support. Thank you, everyone!”
Nio shares fell to their lowest level in nearly five years on Monday, extending recent losses following a stock offering and mounting pressure on new brand and model rollouts.