Nio has a new brand in China called Onvo, and it is coming for the Tesla Model Y with its first release.
Onvo’s first vehicle, a small SUV called the L60, will start deliveries later this month and will be roughly 17 percent less expensive than the base Model Y offering in China.
The L60 starts at 206,900 yuan, or $29,267. This is about 43,000 yuan, or $6,084 less expensive than the Model Y.
It also has a range of 555 kilometers or 344 miles. This matches the 554 kilometers the Model Y’s Long Range configuration can go on a full charge.
There is one big difference: Onvo will use battery-swap technology alongside charging infrastructure. The CEO, Ai Tiecheng, told SCMP that the battery swap is safer and more reliable than traditional charging.
Tesla tried battery swaps years ago, but completely abandoned the idea and technique after customers did not find it as advantageous as simply going to a Supercharger. Now that the Supercharging Network is so robust, it seems like a good idea Tesla decided not to move forward with it.
Tesla shuts down battery swap program in favor of Superchargers, for now
Onvo will offer the service in a subscription package with a one-time charge of 149,900 yuan, or $21,208. It will then cost 599 yuan a month, or $84.75.
Expanding in China
Onvo is also launching a widespread effort to expand its sales presence and plans to open 200 stores in 120 cities by year’s end.
The Chinese automotive market is the most competitive in terms of the EV space, and companies have been fighting for the top spot in the market for years. It is the most concentrated in terms of companies, subsidiaries, and even tech.
Nio’s thought process behind Onvo is that it will be a brand dedicated to more affordable models in competitive segments. Nio routinely competes with luxury companies like BMW and Audi, and they are priced similarly.
Meanwhile, the L60, along with other Onvo models, will be less luxurious but still offer some of the bells and whistles that other vehicles do.
The midsize SUV segment is also one that attracts buyers of all ages and price ranges. Companies are smart to nail down numerous models at different price points to cater to a variety of customers, and it seems that is what the company is doing now.
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