China's Nio has unveiled a rival to Tesla's Model Y.
Chinese electric vehicle (EV) maker Nio has introduced the first car from its new budget-friendly brand Onvo, directly challenging Tesla's popular Model Y.
Priced starting at 219,900 yuan ($30,465, £23,990), the L60 SUV is over 10% cheaper than Tesla's Model Y, which has a price tag of 249,900 yuan.
This announcement coincides with US President Joe Biden's decision to quadruple import taxes on electric cars from China.
Like many other EV manufacturers, Tesla has faced declining sales amid stiff competition from Chinese brands.
The L60 SUV was unveiled in Shanghai by Nio's CEO, William Li, who expressed the company's aim to compete with Tesla's Model Y and the Toyota RAV4.
"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," Mr. Li stated.
Nio has already begun accepting orders for the L60 and plans to commence deliveries by September.
Executives at Nio revealed plans to launch a new Onvo model annually, aiming to penetrate the family car market. Additionally, this move could assist Nio in expanding its global presence beyond China.
However, the brand faces challenges such as 100% tariffs in the US and an ongoing anti-subsidy investigation initiated by the European Union into EV imports from China.
Electric car manufacturers worldwide are encountering significant hurdles, including slower sales and heightened competition.
In April, Tesla initiated layoffs affecting over 10% of its global EV workforce. Furthermore, the company reported a profit decline of over 50% for the first three months of the year compared to the same period last year.
Meanwhile, China's BYD reported reduced profits due to weaker demand and a price war in the world's largest automotive market.
