China's Nio Unveils First Car of New Brand 'Onvo' That'll Be About $4,000 Cheaper Than Tesla's Best-Selling Model Y

By Trisha Andrada

May 16, 2024 03:02 AM EDT

Chinese electric vehicle (EV) maker Nio has introduced the first vehicle from its new budget brand, Onvo, to compete with Tesla's best-selling Model Y car.

Starting at 219,900 yuan ($30,470), the Nio's Onvo L60 SUV is around 10% less expensive than the Tesla Model Y, which retails for 249,900 yuan ($34,628). 

A vehicle from electric car maker NIO sits outside of the New York Stock Exchange (NYSE), September 12, 2018 in New York City.
(Photo : Drew Angerer/Getty Images)

Nio Onvo L60 Competes With Tesla Model Y and Toyota RAV4

Nio CEO William Li demonstrated the car in Shanghai on Wednesday and said the company's goal was to compete with the Model Y of Tesla and the RAV4 of Toyota, Reuters reported. Orders for the Onvo L60 are already being accepted, and delivery is planned for September.

According to Reuters, Onvo president Ai Tiecheng said that the L60 has a slightly lower average energy usage of 12.1 kilowatt-hours (kwh) per 100 kilometers and is equipped with Nio's self-developed 900-volt fast-charging technology.

Onvo vehicles have access to over 25,000 public chargers owned by Nio and over 1,000 stations for swapping batteries.

Read Also: NIO Teams Up With GAC Group for Unified Battery Standard, Charging Solutions

Onvo Brand to Help Nio Expand Internationally

According to the BBC, Nio officials want to release a new Onvo model every year to expand into the family car market.

The Onvo brand could also help Nio expand outside China. However, it will encounter 100% tariffs in the United States and an anti-subsidy investigation by the European Union into Chinese EV imports.

Read More: China Slams New US Tariffs, Vows to Defend Economic Interests Amid Trade Tensions

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