The recent surge in orders for NIO’s Onvo L60 has captured significant attention, with the model racking up nearly 30,000 non-cancellable orders in just 72 hours, according to CarFans China.
We estimate that pre-orders exceeded 100,000 and Onvo has succeeded in converting 30-35% into non-cancellable orders.
NIO’s founder, William Li, confirmed the massive demand and revealed that the company had to expand its server capacity five-old to handle the web traffic at launch.
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Several other EVs positioned closely to the Model Y were also launched recently, including the Zeekr 7X, Luxeed R7, AVATR 07, and IM LS6 (refresh).
The Zeekr 7X starts at 229,900 yuan and has received 800 - 1,000 pre-orders and 21-24 non-cancellable orders per dealership within 72 hours of debut. That amounts to over 10,000 non-cancellable orders, but at a 2-3% conversion rate.
The second is the Luxeed R7, which has converted 50-60 pre-orders per store into 16-20 non-cancellable orders 72 hours post-launch, totalling over 13,000 orders at a respectable 30-40% conversion rate.
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However, we note that according to CarFans China's survey, Luxeed R7 customers mainly consider Tesla Model Y (40%), AITO M7 (30%), and Zeekr 7X (20%) as alternative vehicles. Hence, the R7 is unlikely to be competing for the same type of customers that Onvo L60 is targeting.
Lastly, the IM LS6 was upgraded less than a year since its debut in October 2023. However, we do not have pre-order figures for the IM LS6. The 2023 version consistently sold less than 3,000 units a month.
Finally, the Onvo L60 received 160 - 180 lock-in orders per sales channel, through 150 to 200 sales channels that included directly operated stores, roadshows and external exhibitions.
Source: Onvo
The Onvo L60 was officially unveiled on May 15, 2024 and went on pre-sale at a starting price of 219,900 yuan.
The L60 was then launched officially on September 19, priced even more competitively at 206,900 yuan (c. USD 28,500).
This price point was 13,000 yuan lower than its earlier pre-sale price, which undoubtedly contributed to its appeal.
According to CarFans, the L60 conversion rate of pre-orders ranged between 30 to 35% through the first 72 hours, which suggests that pre-order numbers may have exceeded 100,000 units.
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So, what is driving this success, and what does it mean for NIO as a brand? Though many question battery swapping, many customers visiting Onvo stores are aware of the technology, with 70% of buyers opting in for the BAAS (battery-as-a-service) subscription.
Not only is the base model already affordable, starting at 206,900 yuan, but BaaS (Battery as a Service) allows customers to purchase the vehicle at an even lower price of 149,900 yuan (c. USD 20,600) with a monthly battery rental fee of 599 yuan.
Source: Onvo
Secondly, Onvo has been positioned as a mass-market family EV brand, which has mass appeal when priced right.
The L60 measures 4,828 mm in length, 1,920 mm in width, and 1,616 mm in height, with a wheelbase of 2,950 mm, creating ample interior space for a young family that enjoys road trips.
This competitive pricing, combined with its comprehensive feature set, has resonated well with young families.
In fact, most customers are young families primarily in their thirties and 50-60% of them are trading in their previous vehicles.
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Onvo's new SUV can easily interchange a 60 kWh battery pack capable of 555 km for a longer range 85 kWh reaching 730 km in CLTC range. Onvo also plans to launch a battery capable of over 1,000 km range in the future.
Both standard and long-range battery packs outperform Tesla Model Y's 554 km standard range and 688 km long-range versions at a lower price.
When comparing the two, Tesla’s Model Y starts at 249,900 yuan (c. USD 34,500), and for buyers seeking full autonomous driving features, an additional 64,000 yuan is required.
The L60’s 900V high-voltage platform with an average energy consumption of 12.1 kW per 100 km, paired with intelligent driving options, give it a significant edge in terms of overall value and performance.
With access to at least 1,000 battery swap stations across China, concerns about charging infrastructure are also likely to be overstated.
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While NIO has posted steady delivery numbers above the 20,000 level for its existing models, the L60 is poised to become the company’s new bestseller.
With plans to ramp up production from 5,000 in October, 10,000 in December and to 20,000 units per month by March 2025, the L60’s potential is clear.
Li Bin has already hinted that even with a 43,000 yuan discount compared to the Model Y, the L60 is still profitable. This positions NIO for a potential cash flow boost, which will be crucial as it continues to invest in R&D and expand its product offerings .