Chinese electric car maker Nio unveils its rival to Tesla’s Model Y

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

With prices starting at 219,900 yuan ($30,465, £23,990), the L60 SUV is more than 10% cheaper than the world’s most popular electric vehicle, Tesla’s Model Y, which is priced at 249 900 yuan.

The same week, US President Joe Biden announced he would quadruple the import tax on electric cars from China.

Like other electric vehicle manufacturers, Tesla is facing declining sales amid intense competition from Chinese brands.

The vehicle was unveiled in Shanghai by Nio Chief Executive William Li, who said the company aims to compete with Tesla’s Model Y and the Toyota RAV4.

“With the evolution of technologies and the growing understanding of intelligent electric vehicles, now is the time for us to redefine the new standards for family cars,” said Li.

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

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

However, it faces 100% tariffs in the United States and an ongoing anti-subsidy investigation launched by the European Union into electric vehicle imports from China.

Electric car brands around the world are facing major challenges as they face slowing sales and increased competition.

In April, Tesla began laying off more than 10% of its global electric vehicle workforce.

Later that month, the company announced that its profits for the first three months of the year had fallen by more than half compared to the same period last year.

Meanwhile, China’s BYD Group said its profits fell due to weaker demand and a price war in the world’s largest auto market.