A tit-for-tat conflict has erupted between China’s NIO and Li Auto regarding three-row SUVs.
William Li Bin, the founder, chairman, and CEO of Nio, addressed attendees at a launch event on Thursday, July 31, 2025, in Hangzhou, China, where the company unveiled its second model under the Onvo brand. Credit: NIO
In the fiercely competitive electric vehicle market in China, a significant rivalry has emerged between NIO and its frenemy Li Auto. This follows their respective launches last week of all-electric, three-row SUVs aimed at affluent families with multiple children. The relationship between the two U.S.-listed EV manufacturers has soured as a public conflict erupted between senior executives, while their sales teams raised concerns about each other's products, as noted by a TechNode reporter.
Currently, it appears that NIO is taking the lead, as its stock climbed 8% on the New York Stock Exchange on July 31 after the introduction of the Onvo L90, bringing its market capitalization to $4.9 billion. In contrast, Li Auto's shares have declined for three consecutive days following the launch of its i8 SUV, which reportedly came with a higher price than anticipated on July 29.
Why it matters: With the competition in China's EV market intensifying, both NIO and Li Auto must tread carefully. Previous launches of NIO's first Onvo model and Li Auto's first all-electric vehicle experienced production delays and design controversies, respectively.
As of March, NIO's total losses since last year exceeded $29 billion. The success of the Onvo L90 could provide a critical boost for the struggling EV maker, which aims to break even in the fourth quarter of this year.
Meanwhile, Li Auto has faced challenges with its Mega model, leading to a year-long delay in the release of the i8, its debut battery-electric SUV. The company is also experiencing decreased demand for its extended-range hybrid SUVs.
READ MORE: Charts: NIO, Xpeng, and Li Auto report first quarter 2025 earnings
Li Auto CEO Li Xiang spoke at a press conference in Beijing on Tuesday, July 29, 2025. Credit: Li Auto
Details: Some industry experts suggest that the overlap between the Onvo L90 and the Li i8 is limited, with one being more budget-friendly and the other being more luxurious. Others interviewed by TechNode believe that the larger and more affordable Onvo L90, which offers NIO’s battery leasing option, could diminish the appeal of the Li i8 in terms of value.
The six-seat, single-motor Onvo L90 boasts a driving range of 605 kilometers (376 miles) and starts at just RMB 179,800 ($24,938) when customers opt for the Battery-as-a-Service (BaaS) program. The price rises to RMB 265,800 with the battery included. In comparison, the basic Li i8 has a range of 670 km but is priced significantly higher at RMB 321,800.
At 5.2 meters, the L90 is larger but lighter than the Li i8, featuring a more spacious interior and a frunk and trunk that can accommodate nine pieces of luggage and a child’s bag when all three rows of seats are utilized. Conversely, i8 owners can fit two 28-inch suitcases and four bags in the rear, as stated by Li Auto's CEO Li Xiang. The i8 does not offer front storage.
However, a Li Auto salesperson remarked to TechNode on July 25 that the Onvo L90’s interior appeared cheap, while the i8's cabin used higher-quality materials. A NIO salesperson countered by explaining that the bullet-style front design of the Li Auto i8 could increase the risk of the car becoming wedged under a truck in an accident.
The i8 features modern design elements, including a front inspired by China’s high-speed bullet trains for enhanced aerodynamics. Li Auto addressed safety concerns regarding the design by showcasing several crash test videos at its launch event, including one that tested the i8's ability to withstand a collision with an eight-ton truck at 60 kilometers per hour (37 mph).
The rare public dispute between NIO and Li Auto intensified on July 24, when Li Auto's vice president Liu Jie suggested that NIO employed a “water army” to disseminate biased remarks and rumors about the i8 across major platforms. NIO’s Onvo brand president Shen Fei refuted this allegation and demanded a public apology from Liu on the Chinese social media platform Weibo.
READ MORE: NIO starts pre-sale of three-row Onvo L90 SUV at game-changing $27,000 price
According to NIO, its Onvo L90 SUV features a 240L frunk, the largest in the Chinese market. Credit: NIO
Context: Automakers in China are experiencing dwindling demand, especially in the premium segment, partly driven by economic uncertainties stemming from tariffs.
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A tit-for-tat conflict has erupted between China’s NIO and Li Auto regarding three-row SUVs.
A recent public disagreement surfaced among the senior executives of the companies, as their sales staff voiced concerns about the deficiencies in their competitors' products, as noted by a reporter from TechNode.