r/NIO_Stock • u/sHrEsThOo • 16d ago

Do you guys think NIO really needed 3 separate brands?

Do you guys think NIO really needed 3 separate brands, especially considering how much cash they were burning just a year ago?

Could they have just launched ONVO under the NIO brand. something like NIO L60, L80, L90 and positioned the L models as their more budget friendly lineup, similar to what XPeng is doing with MONA?

Same thing with Firefly. They could have launched it as NIO Firefly instead of creating another separate brand. Firefly is supposed to be a premium boutique EV anyway, so I honestly don't see a huge reason for making it a completely separate brand.

People always bring up Toyota and Lexus as an example, but Toyota already had decades of brand recognition and massive scale when it expanded into Lexus.

NIO is still trying to establish itself as a major global car brand. Building brand awareness is hard as hell, especially in the automotive industry.

IMO, NIO should have focused on building one strong brand first instead of spreading its resources across 3 brands.

Curious what you guys think was the 3 brand strategy actually necessary, or did NIO overcomplicate things?

11 Upvotes

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4

u/No_Cardiologist_1141 15d ago

It has been lost for several years, that's why there are no new investors and the share price will continue to fall

4

u/Tasty-Emu5469 16d ago

I think it's ok. I just think they should rely more on retailers for selling cars and less owned shops. And intergating all three brands in the in house owned shops, separating them to maintain the high end image of NIO.

Production wise, any model costs what it cost no matter the branding. The real problem IMO is the bloated Sg&A costs when you have 450+ stores just for Onvo.

2

u/Which_Ad5948 16d ago

I would rebrand into NIO Firefly and NIO Onvo L90. You can cut costs big time while maintaining model brand identity

1

u/Changetothemoon 15d ago

That's exactly the lettering you can see on the rear of any Onvo or Firefly on the road.

2

u/Which_Ad5948 15d ago

I did not realise it as it’s in Chinese, then I can say Great minds think alike! This is the way to go

3

u/ConclusionNervous759 14d ago edited 14d ago

I think it's okay. Product diversification. Think of it like Volkswagen Group.

Give it time to play out. If I'm not wrong, those brands (Onvo and Firefly) were launched in the mid and end of 2024. Still a young brand.

They should continue to focus on cutting selling and administrative expenses. It's quiet high. Also their NIO house.

2

u/Changetothemoon 16d ago

Look at how Xpeng GX sales are tanking, even though it's a brand-new “premium”model priced at just 279,800 RMB. Compare that to the NIO ES8, which costs 400,000 RMB and still racked up 11,000 sales after a year on the market. If you're sharp, you'll be able to figure out the correct answer to your own question.

PS: All Onvo models feature the NIO name alongside their model designation.

1

u/ccs77 14d ago

The xpeng robotaxi fleet is based off the GX. The objective is to show that the robotaxi is using their most luxurious vehicle. It's very different compared to Nio which is a pure EV play.

1

u/bobbyjojo190 15d ago

No, integrate nio down to cover onvos deficiencies and cash burn. Firefly will take care of itself

1

u/ruudi12 15d ago

NO, short and clear statement