Chinese electric vehicle (EV) manufacturer Nio has initiated a broad internal reorganisation, merging its two sub-brands, Onvo and Firefly, into its main corporate structure. According to an internal company memo dated May 9, the changes affect product development, user services, and marketing divisions, indicating a shift toward consolidating operations and reducing redundancies.

Changes to product development and user services

According to the announcement, Nio’s Product Design & Development (PD&D) Cluster will establish a new first-tier department dedicated to Onvo product design and development, reporting directly to Nio CEO William Li. This department will take over responsibilities from the original Onvo division, including product experience, project management, design, and vehicle engineering. Additionally, a new Onvo Product Line Department will be set up.

Nio’s User Experience & Service (UE) Cluster will establish a first-tier Onvo User Service Department. The department head, Shen Fei, will report to Nio co-founder and president Qin Lihong. This new department will incorporate Onvo’s previous departments, which were responsible for planning and operations, regional sales strategy, regional sales operations, regional sales management, and marketing.

The Onvo Marketing and Event Planning Department and its regional sales companies will be integrated into the UE Cluster and continue to operate as second-tier departments under the existing reporting structure. The Firefly division will also be placed under the PD&D Cluster, although further details on its restructuring have not yet been disclosed.

Context and Industry Outlook

The reorganisation comes after Nio reported deliveries of 23,900 vehicles in April, a 53% year-over-year increase and a 58.9% rise from March. Of these, 19,269 were from the leading Nio brand, while Onvo accounted for 4,400 units.

Separately, CEO William Li announced the delivery of Nio’s 700,000th vehicle at the company’s Wuhan New Energy Research Institute.

The restructuring shows Nio’s aim to streamline its multi-brand operations and boost efficiency as EV competition grows. The company had already started merging services for Onvo and Firefly, such as allowing shared access to Nio House locations.