LeDao CEO Responds to "Buy LeDao Only If You Can't Afford NIO": Different Positioning, Not Due to Budget Constraints

On June 22, Shen Fei, Senior Vice President of NIO and President of ONVO, responded to remarks suggesting that “consumers buy ONVO only because they can’t afford NIO.” He emphasized that customers choose ONVO not due to limited purchasing power, but because its vehicles better meet family-oriented needs—prioritizing space, comfort, ease of entry and exit, and practicality. Shen clarified that while ONVO and NIO are distinct brands with different market positioning, they share the same quality management system. ONVO is not a lower-tier product in terms of quality; it simply targets a different segment. ONVO, NIO’s second brand, was officially established on May 15, 2024, with headquarters in Shanghai, focusing on the design, development, manufacturing, and sales of smart electric vehicles. Its first model, the L60, launched in September 2024 with a starting price of RMB 206,900, achieved monthly deliveries exceeding 10,000 units by its third month post-launch. At the end of July 2024, ONVO introduced its second model, the L90: the six-seater version starts at RMB 265,800 (or RMB 179,800 with the Battery-as-a-Service, or BaaS, option), while the seven-seater version starts at RMB 271,800 (RMB 185,800 with BaaS). Since 2025, ONVO has accelerated its product iteration cycle: on April 21, it launched the 2026-model-year L90 without changing the price; on May 15, it unveiled the L80, positioned as a “flagship value-oriented large five-seater SUV,” starting at RMB 242,800; and on June 11, it rolled out an updated L60 with a starting price of RMB 192,800 (RMB 135,800 with BaaS), simultaneously commencing nationwide deliveries. Due to this rapid pace of product updates, some users accused ONVO of “betraying early adopters.” In response, NIO CEO William Li stated on April 22 that he felt remorseful about such decisions but stressed they were necessary to ensure the company’s long-term viability and fulfillment of service commitments to users, acknowledging insufficient prior communication with customers. Regarding pricing strategy, Shen Fei noted that ONVO maintains relatively stable pricing. While it hasn’t implemented direct price cuts, it has enhanced vehicle configurations without raising prices—effectively offering “more for the same price.” Li previously disclosed that ONVO’s average selling price in Q1 2026 was approximately RMB 240,000—higher than Cadillac’s—and that its main competitors include the Tesla Model Y, XPeng G6, and BYD Song L EV. In contrast, NIO-branded vehicles command higher prices, with models including the ES9, ES8, ES6, ET5, and ET7. The top-trim ES9 exceeds RMB 600,000. In May 2025, the NIO Group delivered a total of 37,705 vehicles, up 62.3% year-over-year. Of these, NIO-branded vehicles accounted for 20,013 units (up 50.8% YoY), while ONVO delivered 12,029 units—surging 91.5% YoY and 124.8% month-over-month. Financially, NIO reported an operating profit of RMB 66.8 million in Q1 2026, marking its second consecutive profitable quarter. Total revenue reached RMB 25.53 billion, up 112.2% year-over-year. Gross margin stood at 19.0%, with vehicle gross margin at 18.8%—both reaching four-year highs. The company forecasts Q2 2026 deliveries between 110,000 and 115,000 units (up 52.7% to 59.6% YoY) and revenue between RMB 32.78 billion and RMB 34.44 billion (up 72.4% to 81.2% YoY).