China's Nio launches Onvo brand to challenge Tesla's best-selling model

Chinese electric vehicle (EV) maker Nio has unveiled the first car from its new lower-priced brand Onvo, in a direct challenge to Tesla's best-selling car.

With prices starting at 219,900 yuan ($30,465, £23,990), the L60 SUV is more than 10% cheaper than the world's most popular EV, Tesla's Model Y, which has a price tag of 249,900 yuan.

It comes in the same week that US President Joe Biden announced he would quadruple the import tax on electric cars from China, reports BBC.

Like other EV makers, Tesla has been struggling with falling sales in the face of intense competition from Chinese brands.

The vehicle was unveiled in Shanghai by Nio's chief executive, William Li, who said the company aimed to rival Tesla's Model Y and the Toyota RAV4.

"With technologies evolving and people’s understanding in smart EVs deepening, today it’s time for us to redefine the new standards for family cars," Mr Li said.

The company has started taking orders for the L60 and aims to begin deliveries by September.