Chinese EV maker Nio is shaking things up with the launch of the Onvo L60 SUV, its first vehicle under a new budget-friendly brand. This move directly targets Tesla's dominance in the electric car market.
A Tesla Rival at a Lower Price
The L60 boasts a starting price of 219,900 yuan ($30,465), undercutting Tesla's best-selling Model Y by over 10%. This aggressive pricing strategy comes amidst a challenging week for Tesla, with US President Joe Biden announcing a quadrupling of import taxes on electric vehicles from China.
Nio Aims to Redefine Family Cars
Nio CEO William Li unveiled the L60 in Shanghai, highlighting its ambition to compete not just with Tesla's Model Y, but also with popular gas-powered SUVs like the Toyota RAV4. Li believes advancements in technology and consumer demand for smarter EVs necessitate a redefined approach to family cars.
Expansion Plans and Global Challenges
Pre-orders for the L60 are now open, with deliveries expected to begin in September. Nio plans to launch a new Onvo model annually to solidify its presence in the family car segment. However, the brand faces significant hurdles outside China, including a 100% import tariff in the US and an ongoing EU anti-subsidy investigation.
Global EV Market Slowdown
The electric car industry is experiencing a period of slower sales and heightened competition. Tesla recently laid off over 10% of its global EV workforce and reported a significant profit drop in Q1 compared to the same period last year. Similarly, Chinese EV giant BYD witnessed a profit decline due to weak demand and a price war within China's massive car market.