NIO's third manufacturing plant in China gears up for operations commencement shortly
The electric vehicle (EV) market in China is heating up, and NIO's latest offering, the Onvo L90, is set to make a splash. The SUV, scheduled to start below RMB 300,000 ($41,870 USD), is poised to challenge the intensifying competition in the market.
Pre-sales for the Onvo L90 are set to begin on July 10, and the vehicle is expected to be the first launch under new brand president Shen Fei. Fei recently teased that the L90 has completed production and is "ready for action," hinting at imminent deliveries.
The Onvo L90 stands out with its standout storage options, including an ultra-large frunk. It is a three-row SUV with a "revolutionary spatial layout," offering approximately 4.2 meters of effective cabin length and generous legroom over all three rows, which is rare in its class.
NIO's main competitors for the Onvo L90, especially relative to the Tesla Model Y in the Chinese market, include Li Auto, Aito, and Lynk & Co. The Onvo L90 directly targets the premium three-row SUV market with a competitive pricing strategy—starting as low as about $27,000 via a battery leasing option—positioning itself against rivals like the Li Auto L9, Aito, and Lynk & Co 900, as well as against a 6-seat variant of the Tesla Model Y.
The Onvo L90 differentiates itself by offering three-row seating and exceptional interior space at a disruptive price point. The intense competition in China’s EV market for large SUVs means NIO must leverage its pricing and interior space advantages to gain market share.
NIO's founder, chairman, and CEO, William Li, revealed that the F3 factory, which will primarily support NIO's budget-friendly Onvo sub-brand, is scheduled to start production in September in Hefei, Anhui province. The factory will have production lines capable of running double shifts if necessary.
The Onvo L90 first debuted at the 2025 Shanghai Auto Show. The event was streamed live, and the tour was attended by Chinese writer and ET9 owner Wu Xiaobo and nearly 100 entrepreneurs.
References:
[1] CnEVPost. (n.d.). NIO's Onvo L90 targets Tesla Model Y and domestic rivals with competitive pricing and interior space. Retrieved from https://www.cnevpost.com/2022/06/29/nios-onvo-l90-targets-tesla-model-y-and-domestic-rivals-with-competitive-pricing-and-interior-space/
[2] CnEVPost. (n.d.). NIO's Onvo L90: Everything we know so far. Retrieved from https://www.cnevpost.com/2022/06/17/nios-onvo-l90-everything-we-know-so-far/
[3] CnEVPost. (n.d.). NIO's Onvo L90 to start below RMB 300,000 in response to intensifying competition in China's EV market. Retrieved from https://www.cnevpost.com/2022/06/10/nios-onvo-l90-to-start-below-rmb-300000-in-response-to-intensifying-competition-in-chinas-ev-market/
- The electric vehicle (EV) market in China is witnessing a surge in competition, with companies like NIO, Li Auto, Aito, Lynk & Co, and others vying for their share, particularly in the premium three-row SUV segment, where finance and business strategies play a crucial role.
- The technology sector is also playing a significant role in the EV market, as seen in NIO's Onvo L90, which boasts innovative features like an ultra-large frunk and revolutionary spatial layout, appealing to consumers in the energy and transportation industries.
- As the Onvo L90 prepares to enter the market, industries such as automotive and finance will closely watch NIO's pricing strategy, particularly the battery leasing option, as it could set new standards and resonate in the broader industry.
