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Nio, one of Tesla’s Chinese rivals in the EV market, is slashing the price of its new Onvo-branded SUV, the L60.
Originally priced at 219,900 yuan ($30,200), the L60 will now start at 149,900 yuan ($21,210) when customers opt for a battery subscription service that costs 599 yuan per month, as reported by CNBC.
For those who prefer to purchase the car with the battery included, the price will be 206,900 yuan ($28,400). Deliveries for the L60 are set to begin on September 28, 2024.
Nio is aiming for 10,000 monthly deliveries by December and up to 20,000 monthly by next year and plans to open over 200 Onvo stores across China by the end of 2024 to reach the domestic market.
This price cut places Nio’s L60 below Tesla’s cheapest model in China, the Model Y, which starts at 249,900 yuan ($35,500). The Onvo brand, launched in May 2024, marks Nio’s entry into the lower-cost EV segment, targeting budget-conscious consumers who still seek advanced electric vehicles.
With this move, Nio hopes to challenge Tesla’s dominance while also fending off local competitors like Xpeng Motors who recently introduced the Mona brand at the starting price of 119,800 yuan for the base model.
In an interview with CNBC, Nio’s CEO William Li shared that the company has global ambitions and plans to introduce its EV cars to Europe as early as next year.
Affordability Becomes Key Focus for EV Makers
The shift towards more affordable EVs is not limited to Nio and Tesla’s Chinese rivals. Even Tesla itself has acknowledged the need to cater to a broader range of consumers, with the company announcing price cuts for its EV lines in China last April.
Other global automakers, such as Ford and General Motors, are also ramping up their efforts in the affordable EV segment. Ford recently revealed that it plans to launch a low-cost electric pickup truck in 2027 to enable them to grab a share of the EV market.
The affordability of EVs is becoming a major selling point. As a result, more manufacturers are likely to focus on producing cheaper models. Chinese companies are already leading the way in this segment, putting pressure on established players like Tesla, Ford, and Volkswagen to adapt and innovate to maintain their competitiveness.
