Nio Unveils Onvo, a Tesla Model Y Rival, at Lower Price Point
Nio unveils Onvo, a new brand, with the launch of the L60 SUV, a direct competitor to Tesla's Model Y. The Onvo L60 is priced at 219,900 yuan, making it more affordable than the Model Y. Nio aims to rival Tesla's Model Y and the Toyota RAV4 in the family car market.
Chinese electric vehicle manufacturer Nio has introduced its new brand, Onvo, with the launch of its first car, the L60 SUV. Priced at 219,900 yuan ($30,465, £23,990), the Onvo L60 is positioned as a direct competitor to Tesla's best-selling Model Y, offering a more affordable option for consumers.
This announcement comes at a time when US President Joe Biden has revealed plans to quadruple the import tax on electric cars from China. Nio's move to introduce a lower-priced alternative to Tesla's Model Y could potentially attract customers who are looking for a more budget-friendly electric vehicle.
Nio's CEO, William Li, unveiled the L60 SUV in Shanghai, emphasising the company's aim to rival Tesla's Model Y and the Toyota RAV4. He stated, "With technologies evolving and people's understanding of smart EVs deepening, today it's time for us to redefine the new standards for family cars."
The company has already started accepting orders for the Onvo L60 and plans to begin deliveries by September. Nio executives have also revealed their intention to launch a new Onvo model every year as part of their strategy to expand into the family car market. This move not only strengthens Nio's position in its home country but also paves the way for international growth.
However, Nio faces challenges in the global market. The brand is subject to 100% tariffs in the US and is currently under investigation by the European Union for potential anti-subsidy violations related to EV imports from China. These obstacles highlight the complexities and trade tensions faced by electric car manufacturers operating on a global scale.
The entire electric car industry is grappling with slower sales and increased competition. Tesla, for instance, recently announced layoffs of over 10% of its global EV workforce. Additionally, the company reported a more than 50% decline in profits for the first quarter of this year compared to the same period last year. Similarly, China's BYD has experienced a drop in profits due to weaker demand and a price war in the world's largest car market.
Nio unveils Onvo, a new brand, with the launch of the L60 SUV, a direct competitor to Tesla's Model Y.
The Onvo L60 is priced at 219,900 yuan, making it more affordable than the Model Y.
Nio aims to rival Tesla's Model Y and the Toyota RAV4 in the family car market.
Source: BBC