Nio Unveils L90 Premium SUV at Competitive Pricing, Critical Test Ahead

Nio Unveils L90 Premium SUV at Competitive Pricing, Critical Test Ahead

Nio Inc has made a strategic move in the Chinese electric vehicle (EV) market with the launch of its Onvo L90 flagship SUV. Priced aggressively, the Onvo L90 is positioned as a family-focused, high-value large SUV, aiming to challenge Li Auto's Li i8, which has faced initial market difficulties.

The Onvo L90, available in six-seat and seven-seat versions, boasts a starting price of RMB 265,800 ($36,940) including an 85-kWh battery pack. Nio's pricing strategy is strategically aggressive, with a starting price that is about 5% lower than its previous pre-sale price. This aggressive pricing aims to boost sales volume and support Nio’s goal of achieving its first quarterly profit by the end of 2025. The company expects the model to still generate gross profit despite the lower prices, relying on cost targets set with partners. Offering a battery subscription option further lowers the upfront price to RMB 179,800 with a monthly fee, enhancing affordability for families.

In contrast, Li Auto's Li i8, which was rolled out on July 29, initially struggled with market acceptance, prompting a rapid relaunch that reduced available variants and lowered prices. While precise pricing details for the Li i8 were not given, Nio’s L90 undercuts competitors like the Li i8 with its aggressive pricing. Li Auto's supercharging station network reached 3,000 locations as of the Li i8's launch, indicating a strong infrastructure for electric vehicle charging.

The Onvo L90 is a large SUV with dimensions of 5,145 mm in length, 1,998 mm in width, and 1,786 mm in height, with a wheelbase of 3,110 mm. Deliveries of the six-seat L90 will begin on August 1, while the seven-seat version will start deliveries in late September. The model is built on a 900-volt high-voltage platform, offering better energy efficiency and charging speed compared to conventional 400-volt platforms.

The Li i8 comes in three variants: Pro, Max, and Ultra, with starting prices of RMB 321,800, RMB 349,800, and RMB 369,800, respectively. The design of the Li i8 is optimized for aerodynamics, resembling a scaled-down version of the Li Mega MPV.

The locally produced Model Y has been one of the most popular models in the Chinese market, with 171,491 units delivered in the first half of this year. Tesla's announcement of the six-seat Model Y L for China this fall is expected to impact both Nio and Li Auto, given Tesla's strong brand influence in the Chinese market.

In summary, Nio's aggressive pricing of the Onvo L90 is a deliberate strategic move to rapidly gain market share among family SUV buyers, achieve volume-driven profitability, and challenge Li Auto's foothold with the Li i8, which has faced initial market difficulties and now competes at a lower but less established price point.

| Aspect | Nio Onvo L90 | Li Auto Li i8 | |----------------------------|-------------------------------------|-------------------------------------| | Starting Price (full purchase) | RMB 265,800 ($36,940) including battery | Price lowered after relaunch; initially higher and less competitive | | Battery Subscription Option | RMB 179,800 + RMB 899/month battery rental | Not specified | | Market Positioning | Family-focused, high-value large SUV, mass-market | First all-electric SUV, premium competitors but struggling in launch | | Sales Performance | Top 3 large SUVs in China shortly after launch | Weakening registrations, declining weekly sales | | Strategic Goal | Aggressive pricing to drive volume/profitability in 2025 Q4 | Corrective relaunch after poor initial acceptance |

1. Nio Inc, in the Chinese electric vehicle (EV) market, has launched the Onvo L90 flagship SUV, targeting Li Auto's Li i8.
2. The Onvo L90 is a family-focused, high-value large SUV, priced aggressively, with a starting price of RMB 265,800 including an 85-kWh battery pack.
3. Nio's pricing strategy undercuts competitors like the Li i8 with its aggressive pricing.
4. The Onvo L90 is available in six-seat and seven-seat versions, boasting better energy efficiency and charging speed on a 900-volt high-voltage platform.
5. Deliveries of the six-seat L90 begin on August 1, with the seven-seat version slated for late September.
6. Li Auto's Li i8, initially struggled with market acceptance, prompting a rapid relaunch at lower prices and reduced variants.
7. Li Auto's supercharging station network reached 3,000 locations as of the Li i8's launch, providing strong electric vehicle charging infrastructure.
8. The Li i8 comes in three variants: Pro, Max, and Ultra, with higher starting prices compared to the Onvo L90.
9. Tesla's announcement of the six-seat Model Y L for China is expected to impact both Nio and Li Auto, due to Tesla's strong brand influence in the Chinese market.
10. Nio's goal with the Onvo L90 is to rapidly gain market share among family SUV buyers, achieve volume-driven profitability, and challenge Li Auto's foothold with the Li i8.
11. Investing in electric vehicles, like the Onvo L90 and Li Auto's Li i8, could be a significant business opportunity in the automotive industry, driven by technological innovation and shifting consumer lifestyles towards sustainable transportation.
12. The EV industry, with companies like Nio, Li Auto, and Tesla, is attracting considerable finance and technology-focused investments for the development and advancement of electric cars and charging infrastructure.
13. The aggressive pricing strategy and innovative features of the Onvo L90 may redefine the EV market in China, stirring competition among players and influencing consumer preferences towards family-friendly electric cars in the near future.

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