Nio's Multi-Brand Strategy Ignites: Onvo and Firefly Hit 20,000 Deliveries Each, enough to drive the stock higher?

Nio Inc. is demonstrating the powerful success of its multi-brand strategy, with its two sub-brands, Onvo and Firefly, both hitting significant sales milestones. This rapid market acceptance, coupled with overwhelming demand for Nio's flagship models, paints a bullish picture for the electric vehicle powerhouse, even as it navigates supply chain hurdles.

NIO: The Multi-Brand Play

Onvo L90: A Breakout Success in the SUV Market

The standout story is the meteoric rise of Onvo, Nio's brand aimed at the mainstream family market. The Onvo L90, a large SUV, celebrated its 20,000th delivery just two months after its official launch. This remarkable achievement underscores the model's strong appeal. The brand delivered 10,575 units in August and was already at 9,425 for September at the time of reporting.

A key factor in its success is its competitive pricing. The L90 starts at RMB 265,800, but with Nio's innovative Battery as a Service (BaaS) plan, customers can purchase the vehicle for an initial price of just RMB 179,800 and pay a monthly battery rental fee. This lowers the barrier to entry and makes the premium electric SUV accessible to a wider audience.

Firefly Shines in the Premium Compact Segment

Simultaneously, Nio's premium compact car brand, Firefly, is also gaining serious momentum. The brand, designed to compete with the likes of Mini and Smart, recently delivered its 20,000th vehicle, reaching this milestone only five months after its market launch. With 5,445 units delivered in September so far, Firefly is on track to set a new delivery record. The brand's appeal is further boosted by a recent 5-star safety rating from the Euro NCAP crash test, adding a layer of trust and quality to its image.

Managing Growth: Nio Prioritizes High-Demand ES8

While its sub-brands are flourishing, Nio is also facing the challenge of high demand for its core models. The company announced it will prioritize production of its new third-generation ES8 SUV, temporarily diverting some 100-kWh battery packs from its swap stations to speed up vehicle deliveries.

This strategic decision comes after the entire annual production capacity of 40,000 units for the new ES8 sold out for the year. New orders now face a wait time of 24-26 weeks. To manage this, Nio is aggressively ramping up production, aiming for a capacity of 10,000 units in October and 15,000 in December. This move, while temporarily affecting some battery swap stations, shows that Nio is proactively managing its supply chain to meet the overwhelming customer demand for its most profitable vehicles.

Taken together, these developments signal that Nio's strategy of diversifying its product portfolio to capture different market segments is paying off handsomely, setting the stage for what analysts predict will be record-breaking delivery numbers.