- author, joao da silva
- role, business reporter
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Chinese electric vehicle (EV) maker Nio has unveiled the first vehicle in its new low-cost brand, Onvo, to compete head-on with Tesla’s best-selling vehicle.
Prices for the L60 SUV start at 219,900 yuan ($30,465, £23,990), more than 10% cheaper than the world’s most popular EV, Tesla’s Model Y, which costs 249,900 yuan.
This is the same week that US President Joe Biden announced that he would quadruple the import tax on electric vehicles from China.
Like other EV makers, Tesla is suffering from declining sales in the face of intense competition from Chinese brands.
The car was unveiled in Shanghai by Nio CEO William Li, who said the company aims to rival Tesla’s Model Y and Toyota’s RAV4.
“As technology advances and people’s understanding of smart EVs deepens, it’s time to redefine a new standard for family cars,” Lee said.
The company has begun accepting orders for the L60 and aims to begin deliveries by September.
Nio executives said the company plans to launch new Ombo models every year as part of its efforts to expand into the family car market.
The brand could also help Nio increase its presence outside its home country.
However, the US has imposed 100% tariffs, and the European Union has launched an anti-subsidy investigation into EV imports from China.
Electric vehicle brands around the world are facing major challenges, facing sluggish sales and increased competition.
Tesla began laying off more than 10% of its global EV workforce in April.
Later that month, the company announced that its profit for the first three months of this year had more than halved compared to the same period last year.
Meanwhile, China’s BYD announced that its profits declined due to weak demand and price competition in the world’s largest automobile market.
