On Wednesday, Nio introduced the first offering of its new low-priced Onvo brand, the L60 SUV, a direct competitor to the Tesla Model Y.
The Shanghai-headquartered electric vehicle (EV) maker said its latest model beats Tesla’s best-selling car in all benchmarks, especially in price. With a starting price of 219,900.00 yuan ($30,465.00), the L60 is 12.00% cheaper than the Model Y’s 249,900-yuan price tag.
Nio CEO William Li stressed that the Chinese automaker’s latest brand seeks to redefine current standards for family cars. Moreover, Li reassured that Onvo’s smart EV technology will not lose to those used by more expensive counterparts.
In addition, the carmaker has begun taking orders for the new SUV and plans to start deliveries by September. According to industry watchers, Onvo’s success may pave the way for Nio to expand outside China.
Unfortunately, US President Joe Biden announced a 400.00% increase in import tax on all EVs from China. The move aims to support local EV brands, especially Tesla, which struggled with softening demand in the first quarter.
Already facing 100.00% tariffs on all exports to the US, Nio may focus on entering the European market instead. However, the ongoing EU anti-subsidy probe on EV imports from China may disrupt the automaker’s expansion strategy.
Onvo to Release a New Nio Model Each Year
On Thursday, Nio executives revealed plans to introduce an Onvo model every year, each targeting a different demographic. They added that the brand’s primary goal is to offer EVs in a price range that matches traditional gasoline-powered vehicles.
Next year, the Chinese automaker plans to release a second vehicle designed for larger families. It expects each model to add 20,000 units to its monthly sales in China, the world’s most competitive EV market.
CEO Li emphasized that China has 110 car brands, which can be consolidated into approximately 25 active players. He highlighted that over a year of brutal price war has forced many EV brands to consider branching out overseas.
