Nio targets mass-market Chinese buyers with affordable Onvo brand, takes on Tesla Model Y

The carmaker priced the basic version of the Onvo L60 SUV at 219,900 yuan (US$30,454), 12 per cent lower than a comparable Tesla Model Y

Currently, all cars under Nio’s namesake brand, are priced at more than 300,000 yuan

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Nio unveiled the Onvo L60 SUV in Shanghai on Wednesday. Photo: Daniel Ren

Published: 9:10pm, 15 May 2024Updated: 2:56pm, 25 Sep 2024

Nio has launched a new electric vehicle (EV) brand targeted at China’s cost-conscious middle-income consumers amid fierce competition in the world’s largest EV market.

The Shanghai-based carmaker said the L60 Onvo-branded SUV, which is equipped with an autonomous driving system, will take on Tesla’s bestselling Model Y. The carmaker enjoys an edge in production cost over its US rival.

Nio said deliveries of the new car will begin in September.

“Onvo vehicles will give family users the best experience at acceptable prices,” William Li, co-founder and CEO of Nio, said at a launch ceremony in Shanghai on Wednesday. “A balance between product experience and cost of building the vehicles will be struck.”

Nio staff pose for a group photo with the company’s 500,000th vehicle at the Hefei plant in east China’s Anhui province on May 9, 2024. Photo: Xinhua

The entry-level version of the L60, which has a driving range of 555km, is priced at 219,900 yuan (US$30,454), 12 per cent lower than the basic edition of the Shanghai-made Model Y, which is priced at 249,900 yuan.

Tesla sold 456,394 units of the Model Y in mainland China last year, an increase of 44.8 per cent from 2022. It outsold all other SUVs, including its petrol-powered rivals, in the world’s biggest car market.