Chinese electric vehicle (EV) manufacturer Nio introduced its new lower-priced brand, Onvo, on Wednesday.
The Onvo L60 SUV, launched to compete with Tesla’s Model Y, starts at 219,900 yuan ($30,476), 12% less than the Tesla Model Y, which begins at 249,900 yuan in China. Nio plans to commence Onvo L60 deliveries in September.
At the unveiling in Shanghai, CEO William Li highlighted the vehicle’s competitive stance against the Tesla Model Y and Toyota’s RAV4. Li emphasized the redefinition of family cars in the era of smart EVs.
He noted that the Onvo L60 offers more space than the Model Y. Ai Tiecheng, president of the Onvo brand, mentioned its advanced 900-volt fast-charging system and efficient energy consumption of 12.1 kilowatt-hours per 100 kilometres.
Onvo vehicles will also have access to over 1,000 Nio battery swapping stations and 25,000 public chargers, enhancing their appeal.
Despite its lower production costs and strategic partnerships, such as sourcing batteries from BYD, Nio’s expansion into Europe faces challenges. An EU anti-subsidy probe into Chinese EV imports could affect this move.
In contrast to its higher-priced Nio lineup, which starts at 298,900 yuan ($41,200), Onvo aims to capture more of the market with its affordability. In the first four months of this year, Nio sold 45,673 EVs, representing 3% of China’s total EV sales.
On the other hand, Tesla continues to dominate, with 163,841 units delivered in China, capturing an 11.4% market share, according to the China Passenger Car Association.
