Nio‘s mass-market sub-brand, Onvo, is reportedly under significant pressure to boost sales performance, leading to an accelerated integration of its operations and sales channels with its parent company in several pilot cities. The move underscores the urgent need for Onvo to contribute more substantially to Nio’s overall sales volume.

The impetus for this integration appears directly linked to Onvo’s recent sales figures. In April, the brand, primarily represented by its L60 model, sold only 4,400 vehicles. This represented a decrease from its March performance and fell short of internal expectations. Onvo was specifically launched with the goal of significantly increasing Nio’s total deliveries, and its current performance is evidently not meeting that objective.

The pressure is palpable within the Onvo organization, particularly in cities where integration is underway. In Hangzhou and Wenzhou, where Nio is taking the lead in the merger, Onvo regional presidents have been demoted, now reporting to Nio’s regional management. Onvo staff in these locations are facing intense scrutiny from their new leadership, enduring lengthy meetings and constant demands for sales updates and explanations for missed targets. Some Onvo managers also report feeling marginalized as Nio’s regional heads seem to favor their existing teams.

Frontline sales staff are also feeling the heat. Onvo has introduced new compensation structures that tie pay directly to strict monthly sales KPIs, offering either a high base salary with low commission or a low base salary with high commission. Failure to meet these demanding targets can result in “special attention” from the company.

This heightened pressure follows a period of missed targets. Onvo’s former president, Alan Ai, had set ambitious goals for the L60, including delivering over 10,000 units in December 2024 and exceeding 20,000 in March 2025. While the December target was met, the crucial March goal was missed, a factor reportedly contributing to Alan Ai’s resignation in April 2025.

The Onvo L60 faces notable market challenges. While its spacious interior and battery swapping capability are positives, its ride quality has been criticized when compared to rivals like the Zeekr 007. Furthermore, the highly popular Xiaomi SU7, with a starting price only slightly above the L60’s purchase price (excluding battery rental), has emerged as a formidable competitor, likely impacting Onvo’s potential customer base. There is also concern that the L60 could potentially cannibalize sales from Nio’s own entry-level ET5 series, especially as recent promotions have narrowed the price difference.

In response to the sales challenges, Onvo has reportedly halted its planned expansion of new stores, a move seen as a precursor to integrating its sales channels more closely with Nio’s existing network.

The new Onvo CEO, Shen Fei, a veteran Nio executive, is now tasked with navigating this challenging sales environment. While known for his focus on execution, Shen Fei is reportedly emphasizing fundamental sales skills and user service for the Onvo team. He is said to be encouraging a more grounded approach to targets, focusing on incremental improvements like selling “one more car than last month” per team member, rather than solely pushing aggressive overall figures.

The accelerated integration, expected to intensify before Onvo’s first anniversary on May 15, is seen as a critical step to improve operational efficiency and, most importantly, boost sales performance to help the brand move towards self-sufficiency. The pressure is clearly on Onvo to deliver results.

Source: 36kr