Introduction

In early April 2025, ONVO, a sub-brand of NIO, experienced a significant leadership shift. Shen Fei, previously heading NIO’s energy division, succeeded Ai Tiecheng as President of ONVO. This change occurred shortly after a series of marketing missteps and unmet sales targets, sparking questions about the brand’s future direction.

1. Controversial Marketing Activities Lead to Employee Penalties

“Qingming Festival” Ad Sparks Outrage

Days after Shen Fei’s appointment, NIO faced public criticism over an inappropriate advertisement. A promotional poster read, “Qingming power swap, ready to go anytime.” “Qingming” is a traditional Chinese festival for ancestor worship, and “power swap anytime” was seen as disrespectful to this solemn cultural occasion, sparking anger.

Shen Fei’s Swift Response

Shen Fei publicly condemned the ad, stating, “The responsible employees must be immediately dismissed. We will also investigate those involved in hiring and oversight.” Within days, NIO announced disciplinary measures:

• Two employees, including the designer and reviewer, were fired.
• Four managers received formal warnings for oversight failures.

Previous Ad Controversies

This wasn’t ONVO’s first marketing misstep. In March 2025, a video ad comparing battery swap services to “changing boyfriends” was criticized for gender stereotypes. The ad was pulled, but under Ai Tiecheng’s leadership, no penalties were announced.

2. Ai Tiecheng’s Tenure: High Hopes, Unmet Targets

From Consumer Goods to Automotive Leadership

Ai Tiecheng, a former executive at Procter & Gamble and Disney, joined NIO in 2021 without prior automotive experience. His relationship with NIO co-president Qin Lihong (who referred to Ai as his “mentor” at P&G) and his status as an early owner of the NIO ES8 helped secure his position as president.

Aggressive Sales Targets

Ai set bold targets for ONVO’s first model, the L60:

• December 2024: Deliver 10,000 units.
• March 2025: Achieve a monthly delivery of 20,000 units.
• He vowed to resign if these targets weren’t met.

Reality Check

The L60 fell short:

• December 2024: Delivered 10,528 units.
• January-March 2025: Average monthly deliveries dropped to about 4,900 units.

Internal issues like production delays and missed subsidy deadlines exacerbated the situation.

3. Shen Fei: A Technocrat at the Helm

Background and Credentials

Shen Fei, a Ph.D. in electronic engineering from Tsinghua University, joined NIO in 2015. He is renowned for establishing NIO’s nationwide battery swap network (3,239 stations as of April 2025) and praised for his attention to detail and operational efficiency.

Immediate Actions

Shortly after taking office, Shen introduced sales-boosting measures:

• Discounts: $6,900 subsidies for L60 buyers.
• Financial Incentives: 5-year 0% interest loans.

Challenges Ahead

Shen faces multiple hurdles:

• Brand Awareness: ONVO’s recognition lags behind competitors like Tesla or Xiaomi.
• Upcoming Competition: Xiaomi’s YU7 model, slated for mid-2025, threatens ONVO’s market share.

4. ONVO’s Product Strategy and Market Positioning

L60: Family-Focused EV

Priced at $23,000-$33,000 (or $23,000 with battery leasing), the L60 targets mid-range SUV buyers. Its spacious design and NIO’s battery swap infrastructure aim to attract practical family users.

Future Models

NIO plans to expand its lineup:

• L90: Three-row SUV (Q3 2025 launch).
• L80: Five-seat SUV (Q4 2025 launch).

5. NIO’s Struggles and Reorganization

Financial Pressure

NIO’s parent company reported a $3.4 billion net loss in 2024. To cut costs, NIO merged ONVO and NIO’s sales channels and laid off non-core staff.

Leadership Overhaul

NIO CEO William Li and President Qin Lihong now directly oversee ONVO’s R&D and marketing, indicating tighter integration between NIO and its subsidiary.