Shanghai (ZXZC)- NIO, a prominent electric vehicle maker in China, has named its second brand "乐道" ("Le Dao") in Chinese and "ONVO" in English, confirmed by NIO's chairman Li Bin and co-founder Qin Lihong on March 14.

"The brand name was leaked, not officially released," Qin Lihong told local media outlets. The new brand is set to officially be launched in May.

Explaining the rationale behind the new brand's naming, Mr. Li Bin elaborated that "乐道" in Chinese characters signifies "joy in the journey, wisdom in family stewardship, and a topic of joyous conversation". Qin Lihong further explained that the English name "ONVO" embodies the essence of being "on the journey" in the English-speaking world.

Setting itself apart from the existing high-end NIO brand, ONVO is designed to cater to the mainstream family car market. It aims to capture a broader customer base by focusing on volume sales, contrasting with NIO brand’s strategy of prioritizing profit margins. This distinction underscores the company's ambition to address diverse market segments within the electric vehicle sector.

During an earnings call on March 5, Li Bin teased that ONVO's inaugural vehicle would compete head-to-head with Tesla’s Model Y but at a cost approximately 10% lower. He also revealed that Moreover, ONVO will operate through a separate sales network, though it will share some of NIO's existing after-sales systems.

The timeline for ONVO is set, with its first vehicle model expected to debut in the third quarter and commence mass deliveries in the fourth quarter of this year. "The second model under the new brand, designed for large families, is an SUV currently in the tooling stage, set for market launch in 2025. The development of a third model is also underway," Li Bin disclosed. He expressed confidence that in 2024, NIO would return to a sales level of 20,000 units per month.