Nio is set to introduce its new affordable EV brand, Onvo, to the European market next year, starting with the launch of the L60 coupé-SUV in the UK. This move comes as a strategic decision, considering that the UK does not impose import tariffs on Chinese-built EVs, unlike the EU. This factor has been a key motivator for Nio, given Onvo’s focus on offering value to consumers.
Currently, Nio’s EVs face a 31% import tariff in the EU, a significant increase from the 10% tariff in 2023. Other car manufacturers, such as BYD, Chery, Mini, Polestar, and Volvo, have also been affected by these tariffs and are relocating production of some EVs from China to Europe to avoid them. However, Nio has not announced any plans to manufacture cars in Europe, despite the opportunity to acquire Audi’s EV factory in Belgium.
Although Nio entered the European market in 2021, the launch of Onvo in the UK will mark the company’s first entry into this region. Onvo’s exports to Europe are expected to begin once production reaches 30,000 units per month, estimated to be around March 2025. The sales strategy for Onvo in the UK is yet to be confirmed by Nio.
In addition to the expansion of Onvo, Nio is gearing up to unveil the first model from its new EV brand, Firefly, which is aimed at producing premium small EVs with a global appeal. While the European timelines for Firefly have not been announced, it is likely that Nio will focus on local production for both Onvo and Firefly models to maintain competitive pricing.
The L60, Onvo’s inaugural model, is a crossover SUV that competes with the Tesla Model Y, emphasizing practicality and efficiency. Priced at around £24,000 in China, the L60 is expected to retail for just over £40,000 in Europe, positioning it as a compelling option in the lower premium segment for family-oriented buyers.
The launch of Onvo in Europe signifies Nio’s commitment to expanding its presence in the region and offering a diverse range of EV options to consumers. With a strong focus on value, practicality, and innovation, Nio’s Onvo and Firefly brands are poised to make a significant impact on the European EV market in the coming years.
