That's because all upcoming Nio-branded products will come from NT 3.0 technology, which not only offers superior performance but also outstanding cost savings, Deutsche Bank said.
Nio's (NYSE: NIO) sub-brand Onvo launched its first model, the L60, at a competitive pricing, and in analysts' eyes the SUV (sport utility vehicle) model is crucial for the electric vehicle (EV) maker.
“We believe the Onvo L60 SUV's success paves the way for a Nio brand revival,” Deutsche Bank analyst Wang Bin's team wrote in a research note today.
That's because all upcoming Nio-branded products will be derived from NT 3.0 technology, which not only delivers superior performance, but also offers outstanding cost savings, the team said.
The Nio brand will share a cost-competitive supply chain with the Onvo brand under the NT 3.0 technology framework, the team added.
In other words, the successful debut of the Onvo L60 SUV sets the foundation for long-term vehicle gross margin guidance -- 25 percent for the Nio brand and 15 percent for the Onvo brand, Wang's team said.
Onvo launched the L60, the first model of Nio's NT 3.0 platform, at an event yesterday, with deliveries set to begin on September 28.
The platform's electrical architecture has been upgraded from the traditional 400 V to a higher 900 V, resulting in better energy efficiency.
Including the battery pack, the Onvo L60 starts at RMB 206,900 ($29,260), which is RMB 43,000 less than the Tesla Model Y's current starting price of RMB 249,900 in China.
Under the BaaS (battery as a service) battery rental model, the Onvo L60 starts at RMB 149,900, with a monthly battery rental fee of RMB 599 or RMB 899 depending on the battery pack.
Compared to models including Tesla's Model Y, Xpeng's (NYSE: XPEV) G6, and IM Motors' LS6, the Onvo L60 offers a larger space thanks to its longer wheelbase, and competitive size in terms of length and width, better exterior appearance, but charges a lower selling price, especially with BaaS, Wang's team noted.
Based on dealers' initial feedback, the new order flow after the Onvo L60's price announcement was very strong, the team said, adding that they have revised their monthly delivery assumption upward to 10,000 units from 8,000 units previously.
($1 = RMB 7.0707)
Nio Onvo launches L60 to take on Tesla Model Y, and wider competition
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