Nio Onvo unveils its premium L90 sports utility vehicle at competitive pricing, a move that could determine its success in the market
The Onvo L90, a new entrant in the Chinese market, is positioning itself as a full-size, family-oriented electric SUV with a strong emphasis on affordability and practicality. With a starting price of approximately $37,200 for the six-seat Pro model, the Onvo L90 offers three-row seating and modern technology, making it an attractive option for many Chinese buyers.
The pricing strategy of the Onvo L90 is highly aggressive, with the starting price of the Max variant around $38,900. However, through Nio’s Battery-as-a-Service (BaaS) subscription, which involves a monthly battery rental fee of about $125, the upfront cost can drop significantly to around $25,000 to $27,000.
In comparison, the Li Auto Li i8, a more premium electric SUV, has a starting price of approximately $48,760, which is at least 25% higher than the Onvo L90’s full purchase price. The Li i8 offers a larger 97.8 kWh battery, fast-charging capability, and a longer claimed range (up to 720 km), targeting buyers who value range and fast charging, supported by Li Auto's large supercharger network.
Meanwhile, Tesla’s Model Y, specifically the new Chinese-market six-seater version with an extended wheelbase, competes in the same family SUV segment but typically holds a higher premium positioning in terms of both price and brand. Tesla’s Model Y pricing generally exceeds Nio’s entry price points and corresponds with its strong brand cachet and advanced software ecosystem. Its competitive edge lies in performance, extensive charging infrastructure, and autonomous driving features, as well as Tesla’s global reputation.
The Onvo L90's aggressive pricing and BaaS leasing option mark a distinct strategy focused on making a full-size SUV more accessible to mass-market Chinese buyers. This positions Onvo L90 as a potentially disruptive competitor in the large electric SUV segment through cost leadership and flexible ownership models.
Key Differentiators
| Model | Market Positioning | Pricing | Key Differentiators | |------------------|-----------------------------------|----------------------------|---------------------------------------------| | Onvo L90 | Affordable, practical full-size family SUV | Starts ~$37,200; $25,000 w/ BaaS monthly battery lease (~$125/month) | Battery leasing reduces upfront cost; 3-row seating; modern features; competitive specs | | Li Auto Li i8| Premium family SUV | $48,760–$55,700 | Larger battery, longer range, fast-charging network | | Tesla Model Y L| Premium electric SUV with extended wheelbase | Higher than Onvo and Li Auto (exact China price varies) | Brand premium, strong tech & charging network, six-seat layout for China |
Deliveries of the six-seat Onvo L90 will begin on August 1, while the seven-seat version will start deliveries in late September. The Li i8, Li Auto's first all-electric SUV, was launched on July 29.
It is important to note that the automobile industry is complex, and even the smallest component supply issue could lead to delivery delays. As Nio has experienced with the initial launch of its ET5 sedan in December 2021.
The Onvo L90's price represents a reduction of RMB 14,100 from its previously competitive pre-sales starting price of RMB 279,900. The Onvo L90 is available in both six-seat and seven-seat versions.
Tesla’s upcoming launch of the Model Y L is expected to impact other six-seat and seven-seat SUV models in the Chinese market. Tesla announced the launch of the six-seat Model Y L in China this fall.
Li Auto has significantly increased its investment in infrastructure over the past year and committed to having 2,500 supercharging stations in China by the time the Li i8 is launched. Nio's stock price in the US market surged by about 7 percent to $4.82, while Li Auto's stock price plummeted by 6.2 percent on the day of the Li i8's launch.
In conclusion, the Onvo L90 offers an affordable and practical alternative in the large electric SUV segment, challenging the more premium and price-intensive approaches of Li Auto and Tesla. The Onvo L90's aggressive pricing and BaaS leasing option could potentially disrupt the market through cost leadership and flexible ownership models.
- The Onvo L90, an affordable and practical family-oriented electric SUV, is poised to enter the Chinese market, offering modern technology at a starting price of around $37,200 for the six-seat Pro model.
- With a starting price of approximately $38,900 for the Onvo L90's Max variant, Nio's Battery-as-a-Service (BaaS) subscription, which involves a monthly battery rental fee of about $125, can lower the upfront cost to around $25,000 to $27,000.
- The Li Auto Li i8, a more premium electric SUV, has a starting price of approximately $48,760, around 25% higher than the Onvo L90’s full purchase price.
- Tesla’s Model Y, a competitor in the same family SUV segment, typically holds a higher premium positioning in terms of both price and brand, with pricing generally exceeding Nio’s entry price points.
- Deliveries of the six-seat Onvo L90 are set to begin on August 1, while deliveries of the seven-seat version will start in late September.
- Li Auto, in preparation for the launch of the Li i8, has significantly increased its investment in infrastructure, aiming to have 2,500 supercharging stations in China by the time the Li i8 is launched.
- Tesla’s upcoming launch of the Model Y L is expected to impact other six-seat and seven-seat SUV models in the Chinese market, with Tesla announcing the launch of the six-seat Model Y L in China this fall.
- Innovative ownership models, such as the Onvo L90's battery leasing option, could potentially disrupt the market through cost leadership and flexible models.
- The automotive industry in China is intricate, and even minor component supply issues could lead to delivery delays, as Nio has experienced with the initial launch of its ET5 sedan in December 2021.
- The competitive EV landscape in China, with players like Onvo, Li Auto, Tesla, and new entrants, is marked by varying market positioning, pricing, and technology offerings, resulting in an increasingly diverse and innovative industry.
