Chinese electric vehicle (EV) maker Nio has unveiled the first car from its new lower-priced brand Onvo, in a direct challenge to Tesla's best-selling car.
With prices starting at 219,900 yuan ($30,465, £23,990), the L60 SUV is more than 10% cheaper than the world's most popular EV, Tesla's Model Y, which has a price tag of 249,900 yuan. It comes in the same week that US President Joe Biden announced he would quadruple the import tax on electric cars from China.
Like other EV makers, Tesla has been struggling with falling sales in the face of intense competition from Chinese brands. The vehicle was unveiled in Shanghai by Nio's chief executive, William Li, who said the company aimed to rival Tesla's Model Y and the Toyota RAV4.
“With technologies evolving and people’s understanding in smart EVs deepening, today it’s time for us to redefine the new standards for family cars,” Mr Li said.
The company has started taking orders for the L60 and aims to begin deliveries by September. Nio executives said they have plans to launch a new Onvo model a year as part of efforts to expand into the family car market.
The brand could also help Nio build up its presence outside its home country. However, it faces 100% tariffs in the US and an ongoing anti-subsidy probe launched by the European Union into EV imports from China.
Electric car brands around the world are facing major challenges as they face slower sales and increased competition. In April, Tesla started to lay off more than 10% of its global EV workforce.
Later that month, the company announced its profits for the first three months of the year had fallen by more than half compared to the same time last year.
Meanwhile, China's BYD said its profits had fallen as it was hit by weaker demand and a price war in the world's largest car market.
