Did potential Nio model buyers switch to Onvo?

BrianTycangco鄭彥渊
11-02

Did potential $NIO Inc.(NIO)$ $NIO-SW(09866)$ model buyers switch to Onvo instead in October? It’s a possibility. Nio brand order flow appears weaker than hoped. If I were NIO I would launch a more aggressive promotion campaign to entice new Nio brand buyers.

“To maintain the new order flow for the Nio brand, the company also ramped up promotions in October. Nio increased accessary purchase bonus by RMB 2,000 ($280) per vehicle, from RM B18,000 in September to RMB 20,000 in October, applicable to all Nio-branded products, according to the team.” - Deutsche Bank

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NIO October 2024 delivery update:

➡️NIO branded cars: 16,657 (down 18% MoM)

➡️ONVO branded cars: 4,319 (up 419% MoM)

They need Onvo deliveries to ramp up closer to 8k-10k for the next couple of months if they are going to meet the target 220k total unit deliveries for 2024.

Note: Nio did mention they expect Onvo production capacity to reach 10k in December.

Still doable overall but cutting it very close.

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