Onvo, a sub-brand of Nio Inc (NYSE: NIO), is currently facing challenges meeting the high demand for its flagship SUV model, the L90. The delivery wait time for the Onvo L90 has doubled, with Chinese customers now expected to wait 8-10 weeks for their orders to be fulfilled. This delay comes despite Onvo’s efforts to accelerate production and delivery by operating its Hefei factory at full capacity and working overtime.
The popularity of the Onvo L90 is evident in the fact that over 70 percent of customers have opted for the Battery as a Service (BaaS) plan when purchasing the vehicle. This battery rental purchase scheme offers customers the flexibility to rent the battery for a monthly fee, making the initial cost of the vehicle more accessible.
The first batch of L90 owners has revealed interesting insights into customer preferences. Among the different variants, 55 percent of owners chose the six-seat Ultra variant, while 43 percent opted for the six-seat Max variant. The seven-seat version of the L90 will begin delivery in late September, offering customers more options to suit their needs.
In terms of exterior and interior colors, black is the most popular exterior color chosen by nearly 50 percent of customers, followed by silver and brown. When it comes to interior colors, brown is the preferred choice for over 60 percent of owners, with beige being the second most popular option.
Despite the production challenges, Onvo remains optimistic about the L90’s success. The brand aims to achieve its first quarterly profit in the fourth quarter and has set a delivery target of over 10,000 units for August. The L90 has already proven to be a top performer in the large SUV segment, ranking third in insurance registrations last week.
Overall, Onvo’s L90 continues to attract a strong customer base, with its innovative features, battery rental scheme, and customizable options making it a compelling choice in the electric vehicle market. As Onvo works to streamline its production processes and meet delivery demands, customers can look forward to experiencing the luxury and performance of the L90 SUV.
