Saad Ullah
Turns out that viral video showing Onvo cars joining Didi's fleet wasn't the big partnership everyone thought it was. NIO (NYSE: NIO) says it was just a small regional test by a team whose boss happened to know some folks at Didi.
NIO (NYSE: NIO) Clears Up the Didi Drama That Had Everyone Talking
So here's what actually went down with that whole Onvo-Didi situation that got everyone buzzing this week. A video started making rounds on Weibo showing Onvo cars being delivered to Didi's ride-hailing service, and naturally, people started thinking this was some major business deal between Nio and China's biggest ride-hailing company.
But hold up – that's not what happened at all. A Nio spokesperson told CnEVPost that this wasn't some big corporate handshake deal. Instead, it was just a small pilot test run by a regional team who wanted to try out a few Onvo vehicles for premium ride-hailing services. Pretty different from the massive partnership everyone was imagining, right?
The whole thing started because the team leader used to work at Didi and still had buddies there. So they figured, why not test out some Onvo L60s with Didi's premium fleet? Makes sense when you think about it – sometimes the best business opportunities come from personal connections. Local media outlet Yicai even reported that Nio called the whole "tie-up" thing a misunderstanding.
Onvo's Actually Crushing It Despite All the Confusion
Here's the thing though – while everyone was getting worked up about this Didi situation, Onvo's been quietly doing really well. The brand delivered 6,281 vehicles in May, which is a solid 42.75% jump from April. Not too shabby for a relatively new player in the game.
The Onvo L60, which launched back on September 19, 2024, with deliveries kicking off on September 28, is targeting regular folks who want something premium but not crazy expensive. At RMB 206,900 (that's about $28,800), it's sitting in that sweet spot where it's still premium but won't completely break the bank.
What's interesting is how this fits into Nio's bigger picture. While the main Nio brand had a rough May – delivering 13,270 vehicles, down 35.41% from last year and 31.13% from April – the sub-brands are picking up the slack. Even their newest sub-brand Firefly delivered 3,680 vehicles in its first full month, which isn't bad at all for a brand-new launch.
NIO (NYSE: NIO) Has Big Plans for Onvo – We're Talking 25K Monthly Sales
Now here's where things get really interesting. William Li, Nio's founder and CEO, laid out some pretty ambitious plans during their June 3 earnings call. They're not just stopping with the L60 – there's the L90 flagship SUV coming in Q3, and the L80 large five-seat SUV dropping in Q4.
But here's the kicker – Li wants all three Onvo models combined to hit 25,000 units per month by Q4. That's a massive jump from where they are now, and honestly, it shows just how much Nio believes in this sub-brand strategy.
Looking at the bigger picture, Nio delivered 23,231 vehicles total in May. That's up 13.08% from the same time last year (20,544 vehicles), though it's down slightly from April's 23,900. The numbers tell a story of a company that's figuring out how to balance its premium main brand with more accessible sub-brands that can reach different types of customers.
The whole multi-brand approach is starting to make sense when you see these numbers. While the main Nio brand might be struggling a bit with its higher-end positioning, Onvo and Firefly are picking up steam with customers who want electric vehicles but maybe don't want to pay Nio's premium prices. It's like having multiple shots at goal instead of just relying on one strategy.
This Didi situation, even though it turned out to be much smaller than expected, actually highlights something important about how these newer brands are finding creative ways to get their vehicles out there and build recognition. Sometimes the best partnerships start small and grow from there.
Saad Ullah
