China EV Insights | Vol.017

ONVO of NIO: China's Emerging Automakers Embrace Multi-Brand Tactics

China's new force in electric vehicle manufacturing is adopting a multi-brand strategy to meet diverse market demands and enhance competitiveness. The implementation of this strategy signifies the maturity of Chinese automakers in brand operation and market segmentation. Taking NIO as an example, the company has launched a sub-brand, ONVO, to attract a broader consumer base with more affordable prices and high cost-performance products. The introduction of the ONVO L60 not only demonstrates a strong market offensive in pricing but also directly competes with industry giant Tesla's Model Y, showcasing the confidence of new force automakers in technology, design, and market strategy.

Positioned as a direct competitor to Tesla's Model Y, the ONVO L60 carries the expectation of increasing NIO's sales and symbolizes the brand's expansion into the mainstream family market. The vehicle starts at a price of approximately $21,605, with the battery-as-a-service (BaaS) further reducing the cost of car ownership.

The L60 has undergone strategic simplifications in its technical configuration, such as adopting a single-motor version and streamlined intelligent driving hardware. These adjustments allow the L60 to maintain performance while offering a larger interior space and lower energy consumption. Additionally, the L60 can utilize NIO's battery swap network, providing users with a more convenient energy replenishment solution.

Although the L60 has had a good start, it still needs to face challenges from other new energy vehicle brands, continuously innovate, and enhance product strength to ensure it remains invincible in the fierce market competition.

Audi's New Journey: The Strategy of China-Exclusive Electric Vehicles

Audi's underwhelming EV sales in China have catalyzed a strategic pivot towards a "New China-Exclusive Model" in collaboration with SAIC Motor. This novel approach is characterized by Chinese-led development, a reliance on domestic supply chains, and an initial market focus solely on China. The initiative, operating independently of the SAIC Audi joint venture, underscores Audi's commitment to localized innovation with over 50 Germany experts contributing to R&D in Shanghai. The forthcoming model, anticipated in November 2024, is a testament to Audi's efforts to expedite its product development cycle to less than 18 months, a significant reduction from the Audi e-tron series' timeline.

Audi's new model is designed to be more responsive to Chinese consumer demands and to achieve cost efficiencies through localized production, thereby enhancing its price competitiveness. The project's ambition is to create a vehicle that not only meets the market's expectations for intelligent features but also outperforms competitors by incorporating Momenta's advanced intelligent driving technology. Despite the optimism surrounding this strategy, its success is contingent upon Audi's ability to match the market's swift pace and the execution of its plans in a landscape where Chinese brands and other international players are aggressively vying for market share.