Chinese electric vehicle (EV) maker, Nio has just introduced the first EV in its lower-priced brand Onvo, dubbed L60 SUV. The new EV is set to be a cheaper rival to Tesla's Model Y and Toyota RAV4, as reported by BBC.
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). William Li, the CEO of Nio, unveiled the vehicle in Shanghai.
Nio may be able to grow its company outside of its nation with the aid of the Onvo brand. However, it has to deal with 100% tariffs in the US and a continuing EU anti-subsidy investigation into Chinese EV imports.
The firm is now accepting purchases for the L60, and delivery is scheduled to start in September. Nio's EV introduction is just another global competitor to Tesla and other EV giants. Just recently, a new Shark plug-in hybrid pickup truck by Chinese EV giant BYD Co. debuted in Mexico City.
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Chinese EV Competitors
The Shark is a car that reportedly aims at Ford, General Motors, and Toyota, strengthening BYD's position in the North American market. According to executives, it is currently limited to Mexico and marks the first time the biggest electric vehicle manufacturer in the world has introduced a new product outside of its native nation.
Stella Li, Chief of Americas at BYD, stated that the company decided on Mexico due to the country's rapidly increasing need for pickup trucks.
Tesla Against EV Competitors
Early in April, Elon Musk's electric vehicle company, Tesla, revealed a steep decline in car sales, delivering just 386,810 units for the first three months of the year, an 8.5% decrease from the previous year.
A contributing factor in the decline was the company's implementation of the updated Model 3 sedan at its Fremont, California, manufacturing facility. It asserted that plant closures forced on by diversions in Red Sea shipping and an arson attack that cut the power to its German operation were additional reasons for the decrease in deliveries.
Last year, Tesla significantly reduced the price of some models to $20,000. For a brief period, the Model Y, which was its best-selling vehicle in March, lost $1,000. The cutbacks worried investors since they lowered the company's profit margins.
According to sources, Tesla's fall in sales is the first decline in vehicle deliveries the business has experienced since 2020. In a letter to investors in January, Tesla stated that it expected "notably lower" sales growth this year.
The company claims that it is positioned between two significant growth waves: the introduction of the new, more affordable Model 2 and the global rollout of Models 3 and Y.
According to sources, the drop in sales is the most recent proof that Tesla is losing market share in the sector that produces electric vehicles. Investors' concerns that the company isn't doing enough to stay up with the intense competition have caused the company's shares to plummet thirty percent this year.
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(Photo: Tech Times)
