Onvo, a sub-brand of Nio Inc, has been making steady progress with the deliveries of its L60 model. The company’s president recently stated that they aim to deliver over 10,000 units in a single month, with December being the target month for this achievement.
Since the launch of the Onvo L60 on September 19, the company has been working towards meeting its delivery targets. In September, 832 units were delivered, followed by 4,319 units in October. The pace of deliveries has been steadily increasing, with insurance registrations showing a positive trend in recent weeks.
The production capacity for the Onvo L60 is also expected to ramp up significantly. By October, the capacity is set to reach 5,000 units, which will further increase to 10,000 units by December. The company’s founder, William Li, has set ambitious goals for the model, aiming for a capacity of at least 16,000 units by January 2025 and 20,000 units by March.
At the Guangzhou auto show, the Onvo L60 had already surpassed 7,000 units in deliveries by mid-November. The company remains confident in its goal of delivering over 10,000 units in a single month by December and over 20,000 units in a single month by March 2025.
In addition to the L60 model, Onvo has plans to launch two SUV models next year. These models will include a six- or seven-seater and a big five-seater, completing the company’s presence in the SUV market. The management team at Nio has stated that these models will be competitive in the market and have well-controlled costs.
Nio is targeting a 10 percent gross margin benchmark for the Onvo brand this year, with plans to gradually increase it to 15 percent next year as capacity and deliveries grow. Analysts at Deutsche Bank expect the Nio brand to sell 223,000 cars in 2025, with Onvo selling 219,000 units and Firefly selling 8,000 units.
Overall, Onvo’s progress with the L60 model and upcoming SUV models indicates a promising future for the company. With ambitious delivery targets and plans for expansion, Onvo is poised to make a significant impact in the electric vehicle market in the coming years.
