Li said this in response to a question about Nio's sales expectations for Onvo's first model, and used English when referring to 'P&L'.

The company's research and development costs over the past 2-3 years have included investments in the Onvo brand, and deliveries of the new brand's first model later this year mean those investments will start to materialize, Li said today.

The Onvo brand will basically only launch one model a year , Li said.

If the product is done right, a single model could sell enough, as Tesla BYD has proven, he said.

Onvo's second model, which will be an SUV aimed at larger families, has already completed much of its development and will begin deliveries next year, Li said.

Separately, Li mentioned in a group interview with local Chinese-language media later in the day that the Onvo L60 still has good gross margins at its current pre-sale price, and that the company won't be selling the car at a loss.

The Onvo brand's R&D and marketing costs are already included in Nio's investment, and the sub-brand won't be considered for a separate listing in the future, Li said.

Onvo president Ai Tiecheng told domestic media that the brand plans to set up 100 directly-managed stores this year, so that when the L60 goes on sale in September, consumers will be able to experience the car in physical stores.

Onvo stores will be located mainly in areas including the automotive trade market, and may consider allowing external cooperation or franchising in the future to expand market coverage, according to Ai.

The brand will focus on expanding into tier 2, 3 and 4 cities, where it expects to overtake the Nio brand in terms of market share, Ai said.

($1 = RMB 7.2191)

Nio formally launches Onvo sub-brand, 1st model L60 to challenge Tesla Model Y