Nio, a Chinese electric car manufacturer, reveals competitor to Tesla’s Model Y

Chinese electric vehicle (EV) maker Nio has made a bold move by unveiling the first car from its new lower-priced brand Onvo, directly challenging Tesla’s best-selling Model Y. The L60 SUV, with a starting price of 219,900 yuan ($30,465, £23,990), is over 10% cheaper than Tesla’s Model Y, which is priced at 249,900 yuan.

This announcement comes in the same week that US President Joe Biden revealed plans to quadruple the import tax on electric cars from China. With Tesla facing declining sales due to fierce competition from Chinese brands, Nio’s entry into the market with the Onvo brand could shake things up.

Nio’s chief executive, William Li, unveiled the L60 in Shanghai, stating that the company aims to rival Tesla’s Model Y and the Toyota RAV4. He emphasized the need to redefine the standards for family cars as technology evolves and people’s understanding of smart EVs deepens.

The company has already started taking orders for the L60 and plans to begin deliveries by September. Nio executives have outlined their strategy to launch a new Onvo model every year to expand into the family car market and increase their presence globally.

However, challenges lie ahead for Nio as they face 100% tariffs in the US and an anti-subsidy probe by the European Union into EV imports from China. With electric car brands worldwide experiencing slower sales and heightened competition, the battle for market share is intensifying. Tesla recently announced layoffs and a significant drop in profits, while China’s BYD also reported a decline in profits due to weaker demand and a price war in the car market.