In the face of soaring fuel costs, the president of Onvo, Fei Shen, has made a compelling case for transitioning from gasoline vehicles to electric ones. This comes as China prepares for a significant rise in fuel prices, offering a stark contrast between the cost-effectiveness of electricity and traditional petrol.
On March 23, China’s National Development and Reform Commission is set to increase retail gasoline prices by about 2,130 yuan ($309) per tonne and diesel prices by 2,055 yuan ($298) per tonne. Shen highlighted this change, stating, “Petrol prices are set to rise again tonight,” and questioned how long gasoline vehicle owners would delay before making the switch to electric vehicles.
Shen emphasized the economic benefits of electric vehicles, noting, “Electricity costs only 1/10 of the fuel costs per kilometer.” He also pointed out the convenience of Nio Group’s battery swap network, which allows for a quick three-minute battery swap, paralleling the ease of refueling a gasoline car.
In light of the fuel price hike, Shen invited gasoline car owners to test drive an Onvo vehicle, promoting the experience through a QR code embedded in his message. He encouraged potential customers to “upgrade your vehicle” and take advantage of the Onvo test drive opportunity.
Fuel Price Surge
The anticipated adjustment by China’s National Development and Reform Commission will raise gasoline prices by approximately 1.71 yuan ($0.25) per litre for 92-octane gasoline and 1.82 yuan ($0.26) for 95-octane, marking the sixth adjustment this year. This increase follows a recent price hike of 695 yuan ($101) per tonne on March 9, the largest in four years, driven by rising international crude oil prices, particularly Brent crude, which recently exceeded $112 per barrel.
With China importing over 70% of its crude oil, domestic prices are closely aligned with international benchmarks, adjusted every 10 working days. The cumulative effect of these changes has resulted in a significant rise in pump prices, adding about 75 yuan ($11) to a typical 50-litre fill-up and 106 yuan ($15.4) to a 70-litre tank.
Shen’s Legacy and Onvo’s Prospects
Before leading Onvo, Shen was instrumental in developing Nio Power, overseeing the establishment of more than 3,700 battery swap stations across China. His efforts have facilitated over 100 million battery swaps, supporting both the Nio and Onvo brands, with future plans to extend this network to the Firefly brand.
Shen’s promotion to Onvo president came after Alan Ai stepped down, following the L60 SUV’s failure to meet sales targets. To boost interest, Shen is offering exclusive test drive invitations via QR code, encouraging prospective buyers to explore the benefits of electric vehicles and “say goodbye to fuel price anxiety.”
Incentives to Drive EV Adoption
In response to declining sales, Onvo has introduced new incentives, including full purchase tax coverage for buyers selecting Nio’s Battery as a Service program. Subsidies are available up to 8,156 yuan ($1,184) for the L60 SUV and 10,262 yuan ($1,490) for the L90. Financing options include partial subsidies on battery rental purchases, with down payments starting at 29,900 yuan ($4,350) for the L60 and 35,900 yuan ($5,220) for the L90.
Buyers can also benefit from a seven-year financing plan at a low annualized rate of 0.49%, with no service fees and the flexibility of early repayment. Additionally, Onvo offers 80,000 loyalty points to L90 buyers who ordered after January 1 but have not yet received the purchase tax subsidy.
Original Story at eletric-vehicles.com