/// NIO focuses on brand building, while Ledao focuses on sales volume.

Editor: Xiao Ying

As the 12th new car under the NIO system, Ledao L60 was officially launched on September 19th with a starting price of 206,900 yuan; if the battery rental model is adopted, the starting price can be reduced to 149,900 yuan.

In the 10 years since its establishment, NIO has accumulated a good reputation among users, but due to its unaffordable prices and the increasingly competitive new energy market, it has been unable to produce a hit product like Tesla Model Y.

The emergence of Ledao L60 is NIO's weapon to boost sales, targeting the 200,000-300,000 yuan market.

NIO founder Li Bin's sales expectation for Ledao L60 is 20,000 units per month.

Li Bin did not disclose the conversion rate from small reservations to large reservations after the launch of Ledao L60, but stated that the orders have exceeded expectations and gave a very positive production forecast: 5,000 units in October, 10,000 units in December, at least 16,000 units in January 2025, and 20,000 units in March 2025.

Currently, NIO's total monthly sales across all its products are around 20,000 units, and NIO has achieved monthly sales exceeding 20,000 units for four consecutive months. Such sales performance is already impressive for NIO and it is difficult to achieve further breakthroughs.

Therefore, if Ledao L60 alone can achieve monthly sales of 20,000 units, it will undoubtedly greatly reduce the sales pressure on NIO.

What are NIO's thoughts on the product definition of Ledao L60? How does Ledao differentiate from NIO in terms of brand and products? Does Ledao L60 have product competitiveness?

On the second day of Ledao L60's launch, Li Bin and Ledao Auto President Ai Tiecheng were interviewed by the media.

01

Above Tesla Model Y, below joint venture fuel SUV

Ledao L60 is positioned as a mid-size pure electric SUV, and the sales leader in this segment is Tesla Model Y, which has averaged 38,900 sales in the domestic market over the past year.

Capturing a share of the Tesla market is undoubtedly one of Ledao L60's goals. Tesla Model Y starts at 249,900 yuan, while Ledao L60 is 43,000 yuan cheaper.

From a product configuration comparison, both cars have their respective advantages. Ledao L60 boasts a larger interior space, while Tesla Model Y offers stronger performance.

In terms of CLTC range, the two models are quite close; in terms of intelligent driving capabilities, Ledao L60 claims to offer highway and urban autonomous driving upon delivery, while Tesla Model Y's full intelligent driving capabilities are expected to be released in China next year. It remains to be seen which one is stronger.

In terms of suspension, Ledao L60 uses a double-ball-joint MacPherson front suspension and a five-link rear suspension, while Tesla Model Y uses a double-wishbone front suspension and a multi-link rear suspension.

It is worth mentioning that Ledao L60 is based on NIO's new NT3 platform, featuring a 900V high-voltage platform and NIO's latest SkyOS vehicle operating system.

Even with Tesla Model Y's significant brand advantage, Ledao L60 offers competitive pricing and product capabilities.

Furthermore, thanks to NIO's Battery-as-a-Service (BaaS) sales model, Ledao L60 can also be sold with a battery rental option. Excluding battery costs, the starting price of Ledao L60 is only 149,900 yuan.

This positions Ledao L60 in the 100,000-150,000 yuan mid-size SUV market for joint venture fuel vehicles, one of the core segments for joint venture brands, contributing over 100,000 sales per month.

Of course, under the battery rental model, consumers need to pay a monthly battery rental cost of 599 yuan (standard version), which may deter some customers.

Ai Tiecheng did the math, stating that with the benefits of the large reservation (5 years of battery rental with 3 payments and 1 free), the monthly battery rental cost for users is only 499 yuan. "This is like filling up a 60-liter gas tank with 92 octane gasoline," he said.

He continued, explaining that the average fuel vehicle user consumes 1.5-2 tanks of gas per month. For Ledao users, the cost of one tank of gas is equivalent to the monthly battery rental cost, plus an additional 100-200 yuan for electricity.

Therefore, the monthly usage cost of Ledao L60 is definitely lower than that of a fuel vehicle, and "I believe consumers will eventually understand this," he said.

While Ledao L60's target market, product definition, and pricing strategy are relatively clear, there is still some uncertainty about its ability to compete effectively.

On the one hand, compared to Tesla Model Y, which has been tested in the market, Ledao L60 is still a new product. Configuration does not equal experience, and buying a car ultimately comes down to the actual driving experience, safety, and durability, which will need to be accumulated as Ledao L60 deliveries continue. Therefore, feedback from the first batch of users is particularly important for Ledao.

On the other hand, the battery rental model still has a learning curve, and most consumers may not immediately understand or accept the concept of renting a battery. How to better educate consumers is the next necessary step for NIO and Ledao.

02

With battery rental at 149,900 yuan, Ledao L60 still has a gross margin

The new energy vehicle market has been highly competitive this year, with some automakers publicly stating that they are selling cars at a loss.

In response to questions about whether Ledao L60's low pricing allows for profitability, Li Bin said that despite the pricing, Ledao L60 still has a gross margin. "We will not price below our gross margin at this stage," he said.

The ability to achieve this pricing level, according to Li Bin, is based on NIO's mature supply chain system and Ledao L60's effective cost control.

"It's not that the car is bad, but we use quality materials where necessary, such as submarine-grade steel for excellent safety performance. Of course, we also make some trade-offs, for example, by not including electric sliding doors," he said.

Li Bin explained that product positioning and price range require a balance of features and materials, rather than simply stacking them up.

The essence of Ledao L60's cost control lies in the reuse of NIO's technology. In fact, Ledao L60 can be considered a model from NIO's latest platform.

So, why spin off Ledao as a separate brand? This is where NIO's smart move lies. It allows NIO to maintain its high-end brand image and cater to its existing customer base while also expanding into the 200,000-300,000 yuan market segment for better market competition.

Prior to the launch of Ledao L60, NIO held three major events this year: the first was the adjustment to its BaaS business model in mid-March, the second was the "NIO Innovation Day" in late July, and the third was the announcement of county-level charging network expansion on "NIO Charging Day" on August 20th.

NIO President Qin Lihong said that these three events served as important preambles and foundations for the launch of Ledao L60.

Ledao L60 is equipped with NIO's latest technologies, including the SkyOS vehicle operating system, 900V high-voltage platform, smart cockpit, and advanced intelligent driving capabilities.

At the same time, Ledao L60 benefits from NIO's "chargeable, swappable, and upgradable" energy replenishment system, BaaS battery rental model, and entire user service system.

Therefore, aside from specific user service benefits and personalized configurations, Ledao L60 can be considered a new NIO model.

Regarding how to differentiate the two brands, Li Bin provided some insights on-site. He said that NIO is positioned to compete with premium brands like BMW, Audi, and Mercedes-Benz, while Ledao targets the mainstream family car market, including Tesla and joint venture fuel vehicle brands.

In terms of actual orders, there is a clear segregation between NIO and Ledao users.

Ai Tiecheng shared a set of data, noting that when Ledao L60 first opened for reservations, only 2-3% of those who placed reservations were existing NIO owners, and most of them were looking to add another vehicle to their fleet.

Li Bin observed that as one moves up the automotive market ladder, emotional factors play a larger role in purchasing decisions.

Feedback from the NIO user community on the pricing of Ledao L60 also confirms Li Bin's assessment. Despite a price difference of over 100,000 yuan, most users still prefer NIO due to the higher perceived value of the brand.

03

If you plan to replace your car in 8 years, renting a battery is more cost-effective

Finally, let's examine the competitiveness of Ledao L60's configuration and whether it's worth opting for the BaaS model.

Based on range and power, Ledao L60 can be divided into four versions.

All four versions of Ledao L60 come standard with a 900V high-voltage architecture, advanced intelligent driving hardware (including an NVIDIA Orin X chip and 30 perception sensors), a Qualcomm 8295P high-performance cockpit chip, and a 17.2-inch LCD center console screen.

From the perspectives of range, power, intelligent driving, smart cockpit, and 900V high-voltage platform configuration, Ledao L60 is well-rounded and has no obvious shortcomings when compared to other models in the 200,000 yuan price range.

Looking at the suspension and chassis, Ledao L60 is equipped with a double-ball-joint MacPherson front suspension and a five-link rear suspension, complemented by FSD damping shock absorbers. This configuration balances space and comfort, with the only deviation from mainstream configurations being the front suspension, as most 200,000-300,000 yuan models use a double-wishbone front suspension.

In response to this criticism, Li Bin explained during the interview that the cost difference between a double-ball-joint MacPherson and a double-wishbone suspension is only 100 yuan. Ledao L60's choice of the former is not based on cost but rather on a balance of space and chassis comfort.

Driving control and chassis comfort depend not only on configuration but also on tuning. Interested parties are encouraged to take a test drive and form their own opinions.

With dimensions of 4828mm in length, 1930mm in width, 1616mm in height, and a wheelbase of 2950mm, Ledao L60 offers a spacious interior among mid-size SUVs.

Therefore, even with a starting price of 206,900 yuan, we believe Ledao L60 is highly competitive in its class.

Now, let's consider whether opting for the BaaS model is worthwhile when purchasing this vehicle.

With the BaaS model, the starting price of Ledao L60 is reduced to 149,900 yuan, with a monthly battery rental cost of 599 yuan for the standard range version and 899 yuan for the long-range version. This equates to a reduction of 57,000 yuan and 86,000 yuan in the car price, respectively.

Taking the standard range battery rental as an example, if you pay 599 yuan per month, the 57,000 yuan saved on the battery cost can cover 8 years of battery rental.

If you are a founder's edition owner who converted their reservation to a firm order before October 8th, you can enjoy an additional benefit of 4 months of free battery rental for every 5 paid months, further reducing the cost of battery rental.

Ultimately, whether to choose the BaaS model depends on your expected vehicle ownership period. If you plan to replace your car within 8 years, opting for the BaaS model offers significant cost advantages.

Of course, there is a hidden issue with the BaaS model: when selling a used car, the understanding and acceptance of the BaaS model may increase the threshold for selling.

Finally, in terms of user benefits, Ledao has shown great sincerity. Those who place a firm order before October 8th can become founder's edition users of Ledao L60 and enjoy benefits such as 5 years of free NOA navigation-on-autopilot and 4 months of free battery rental for every 5 paid months over 5 years.

To date, Ledao has established 120 experience stores nationwide and plans to exceed 200 by the end of the year. In terms of battery swap stations, Ledao currently has 304 available and aims to exceed 1,000 by the end of the year.

As a new brand, Li Bin also revealed in the interview that Ledao plans to launch a new model each year, with a 6-7 seater SUV expected to be released in the third quarter of next year.