China’s Nio unveils a new competitor to Tesla’s Model Y

Chinese electric vehicle (EV) maker Nio has unveiled the first car from its new cheaper Onvo brand, in a direct challenge to Tesla’s best-selling car.

With prices starting from 219,900 yuan ($30,465, £23,990), the L60 SUV is more than 10% cheaper than the world’s most popular electric car, Tesla’s Model Y, which has a price tag of 249,900 yuan.

It comes in the same week that US President Joe Biden announced he would quadruple the import tax on electric cars from China.

Like other EV manufacturers, Tesla is struggling with declining sales due to intense competition from Chinese brands.

The vehicle was unveiled in Shanghai by Nio’s CEO, William Li, who said

During his speech, Mr Li said the company wants to compete with Tesla’s Model Y and the Toyota RAV4.

“As technologies evolve and people’s understanding of smart EVs increases, today is the time for us to redefine the new standards for family cars,” said Mr. Li.

The company has started taking orders for the L60 and aims to start deliveries by September.

The Onvo brand could also help Nio expand its business beyond its home country.

However, the country faces 100% tariffs in the US and an ongoing anti-subsidy investigation from the European Union over electric vehicle imports from China.