Chinese electric car company Nio launched its low-cost brand Onvo on Wednesday, May 15, 2024 in Shanghai, China.
CNBC | Evelyn Chen
SHANGHAI—Chinese electric car company Nio said Wednesday that the first car of its new low-cost brand Onvo will cost about $4,000 less than Tesla’s equivalent Model Y.
Deliveries of Onvo’s first vehicle, the L60 SUV, are scheduled to begin in September, the company said. Pre-sales began after Wednesday’s launch event.
In an interview with CNBC’s Eunice Yun, Nio CEO William Lee said he expects Ombo to start selling cars overseas at some point, but did not say when. Ta.
Since its launch about 10 years ago, Nio has focused on the luxury car segment, priced around 300,000 yuan (about $41,500) and above. The company has since expanded into Europe, but its monthly deliveries in China remain generally modest compared to its competitors.
Onvo’s L60 starts at 219,900 yuan (30,439 USD), while the Model Y costs 249,900 yuan (34,617 USD). Elon Musk’s electric SUV has become one of the best-selling pure battery-powered electric vehicles in China.
Intense competition in China’s electric vehicle market has led to new entrants, prompting many companies to cut prices.
Smartphone company Xiaomi entered the electric vehicle market in late March with the SU7 sedan, which rivals Tesla’s Model 3 and also costs about $4,000 less.
The Model 3 has since had its price reduced by about $2,000 to 231,900 yuan ($32,124), according to Tesla’s Chinese website. Xiaomi announced on Wednesday that it has delivered 10,000 SU7 vehicles.
BYD sold more cars last year than Elon Musk’s automaker, including hybrids, but mostly cars priced under 100,000 yuan (US$13,851). BYD has started expanding into higher-end segments in recent years.
Nio CEO Lee confirmed to CNBC that the L60 uses a low-cost battery made by BYD.
Global competition from Chinese electric vehicle makers has also led to tough new tariffs on electric vehicle imports to the United States by the Biden administration, with the administration saying on Tuesday that Chinese electric vehicles will be subject to 100% tariffs. It was announced on .
Asked about the new levy, Li said it was “totally unreasonable,” according to a translation from Mandarin to English by CNBC. Mr Lee also addressed the impact on consumers and climate goals.
At Wednesday’s launch event, translated by CNBC, Ombo aims to set a “new standard” for family cars, Niosub brand president Alan Ai said in Chinese.
The brand name means “on a voyage,” and the Chinese name “Le Dao” is reminiscent of a family spending happy time together.
Ai made many comparisons to the Model Y and other cars during his presentation.
He said the L60’s interior is more spacious than Tesla’s Model Y or Toyota’s Rav4. He also said Ombo’s new car has better shock absorption and cuts tighter figure-eight curves than its competitors.
Onvo’s advertised range on a single charge is at least as good as the Model Y, if not more, depending on the version.
As a sub-brand, Onvo vehicles will have access to many of Nio’s battery swapping and charging stations, Ai said.
Ai also showed a video of the Onvo model using driver assistance technology to navigate country roads and city streets.
Tesla’s “Full Autonomous Driving” driver-assistance software is not yet available in China, but it is widely expected to be close to approval by the Chinese government.
