Tesla’s Chinese rival Nio launches a new brand and car that undercuts the Model Y by $4,000

Chinese electric car company Nio launched its low-cost brand Onvo in Shanghai, China on Wednesday, May 15, 2024.

CNBC | Evelyn Cheng

Shanghai – Chinese Electric Car Company NIO It revealed on Wednesday that the first car from its new, lower-priced brand, Onvo, will be about $4,000 cheaper than Onvo. Tesla’s Comparable Model Y.

Deliveries of Onvo’s first car, the L60 SUV, are scheduled to begin in September, the company said. Pre-sale started after Wednesday’s launch event.

According to an interview with CNBC, Nio CEO William Lee said he expects Onvo to sell its cars overseas at some point, but he did not say when. eunice yoon,

Since its launch about 10 years ago, Nio has focused on the premium segment of cars, which cost around 300,000 yuan (about $41,500) or more. The company has since expanded into Europe, but its monthly deliveries in China have generally been modest compared to the competition.

Onvo’s L60 starts at 219,900 yuan ($30,439), while the Model Y is priced at 249,900 yuan. Elon Musk’s electric SUV has been one of the best-selling pure battery-powered electric cars in China.

Fierce competition in China’s electric car market has invited new entrants and prompted many companies to cut prices.

smartphone company Xiaomi Entered the electric car market in late March to take on Tesla’s Model 3 with its SU7 sedan, which was priced at Also about $4,000 cheaper,

According to Tesla’s China website, the Model 3’s price has been cut by about $2,000 to 231,900 yuan. Xiaomi said on Wednesday that it has delivered 10,000 SU7 vehicles.

BYD, which sold more cars last year than Elon Musk’s automaker, including hybrids, mostly sells cars in the range of 100,000 yuan or below. BYD has begun to expand into high-value segments in the past few years.

Nio CEO Lee confirmed to CNBC that the L60 is using BYD’s low-cost batteries.

Global competition from Chinese EV makers has also posed a tough challenge new tariffs The Biden administration will impose 100% tariffs on Chinese EVs on imports of the vehicles into the US, the administration announced earlier this week.

Asked about the new tariffs, Lee called them “completely unreasonable” considering the impact on consumers and climate goals. This is according to a CNBC translation of Mandarin.

A ‘new standard’ family car to rival Tesla