Chinese automaker Nio is launching a budget brand called Onvo, aiming to take on Tesla with its first model, the L60 SUV.
Subscription-Based Battery Rental
Nio, known for its premium electric vehicles, launches this SUV priced at 149,900 Chinese yuan (around $21,210), the L60’s affordability comes with a twist: buyers can opt for a subscription-based battery rental, starting at 599 yuan per month (about $1,000 per year).
For those who prefer to own the battery outright, the starting price jumps to 206,900 yuan, according to Ziare.
Deliveries of the Onvo L60 are set to begin on September 28, with Nio shares briefly climbing over 3.5% in U.S. trading following the vehicle’s launch.
Direct Competition for Model Y
The L60 is positioned to compete directly with Tesla's Model Y, which retails for 249,900 yuan in China. Initially, Nio had announced a higher starting price of 219,900 yuan for the Onvo L60 when the brand was introduced in May, but it has since been lowered to attract more buyers.
Nio isn't the only Chinese EV company stepping up its competition against Tesla. Zeekr, backed by Geely, is launching its own mid-size electric SUV, the Zeekr 7X, priced from 239,900 yuan. Similarly, Xpeng's new brand, Mona, recently announced the release of its M03 electric coupe, with prices starting at 119,800 yuan.
Chinese electric vehicle manufacturers have been expanding internationally, particularly into Europe. However, the European Union is expected to impose higher tariffs on imported Chinese-made EVs starting in November, which may impact their growth in overseas markets.
