Entering the lower-end market with ONVO may dilute NIO's premium brand image and could lead to cannibalization of its existing product lines. The success of these new brands will depend on NIO's ability to differentiate them effectively while maintaining quality standards. Additionally, the lower-end EV market in China is highly competitive, with numerous established players offering affordable options. NIO will need to navigate this crowded space while managing the costs associated with launching and marketing new brands.