China's Nio introduces a challenger to Tesla Model Y

Targeting Tesla's Model Y, the L60

In a clear challenge to Tesla's best-selling vehicle, Chinese electric vehicle (EV) manufacturer Nio has presented the first vehicle from its new, less expensive brand, Onvo.

The L60 SUV is more than 10% less expensive than the world's most popular electric vehicle (EV), Tesla's Model Y, which has a starting price of 219,900 yuan ($30,465, £23,990).

It occurs the same week when US President Joe Biden said he would increase import taxes on Chinese electric vehicles by four times.

In the face of fierce competition from Chinese companies, Tesla has been experiencing declining sales, just like other EV manufacturers.

William Li, the CEO of Nio, revealed the car in Shanghai and said that the business wanted to compete with the Toyota RAV4 and Tesla's Model Y.

"With technologies evolving as well as people’s understanding in smart EVs deepening, nowadays it’s time for us to redefine the new standards for family cars," added Li.

Orders for the L60 are already being accepted by the firm, and delivery are scheduled to start in September.

Nio may be able to grow its company outside of its own nation with the aid of the Onvo brand.

But it has to deal with 100% tariffs in the US and an ongoing EU anti-subsidy investigation into Chinese EV imports.

Globally, electric vehicle manufacturers are facing significant obstacles due to a decline in sales and heightened rivalry.

Over 10% of Tesla's worldwide EV staff was let go in April.

Subsequently, the business said later that month that its earnings for the first three months of this year had decreased by almost half when compared to the same period previous year.

Concurrently, BYD, a Chinese company, reported a decline in profitability due to reduced demand and a pricing war in the biggest automobile market globally.