Deutsche Bank expects the Nio main brand and the Onvo brand to launch a total of six new products in 2025, realizing 300,000 unit sales.
(Image credit: CnEVPost)
Deutsche Bank gave a positive read to the debut of the first model of Nio's (NYSE: NIO) sub-brand Onvo, saying the model could help Nio top 20,000 units of sales per month.
"Onvo L60 SUV will officially start delivery in Sep. 2024 , and company is targeting Onvo L60 monthly delivery volume of ~10,000 units," analysts Wang Bin's team said in a research note sent to investors overnight.
Nio officially launched its Onvo (Ledao in China) sub-brand yesterday and began pre-sales of its first model, the L60, at a price of RMB 219,900 ($30,500), RMB 30,000 less than the Tesla (NASDAQ: TSLA) Model Y.
The L60 will officially go on sale and start deliveries in September, Onvo said at yesterday's launch.
Previously, Nio's management expected that with the Onvo L60 coupe SUV, Nio's total monthly deliveries would be back above the 20,000-unit level, Deutsche Bank noted.
In April, Nio deliveries grew 135 percent year-on-year and 32 percent sequentially to 15,620 units, with EC6, ES6, and ET5 sales up 53 percent, 48 percent, and 52 percent month on month, the team noted.
"Thus we think Nio's expectation of monthly >20,000 unit delivery is achievable with boost from Onvo," the team wrote.
The team expects the Nio main brand and the Onvo brand to launch a total of six new products in 2025, realizing 300,000 unit sales.
They expect the Onvo brand to launch a second product in 2025 – an ultralarge SUV larger than the L60 and a mid-size SUV smaller than the L60.
Based on the same Nio's next-generation technology, NT 3.0, the team expects the Nio brand to launch four new products in 2025, including the ET9 sedan, ET6 sedan, ES8 SUV, and ES7 SUV.
"As a result, we forecast Nio's total 2025 sales volume to increase 62% YoY to 300,000 units (~200k units / ~100k units from Nio brand / Onvo brand) in 2025," the team wrote.
Earlier today, Nio management told media, including CnEVPost, at a roundtable in Shanghai that Onvo's second model has completed most of its development and will begin deliveries next year.
Onvo's second model will be a competitive SUV aimed at larger families, according to William Li, founder, chairman and CEO of Nio.
"The Onvo brand will basically launch one new model a year, not too many," Li said.
"If the product is done right, a single model could sell enough, as Tesla BYD has proven," he said.
($1 = RMB 7.2147)
Nio formally launches Onvo sub-brand, 1st model L60 to challenge Tesla Model Y