- author, Joao da Silva
- stock, Business Correspondent
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Chinese electric vehicle (EV) maker Neo has unveiled the first car from its new low-cost brand Onvo, a direct challenger 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 costs 249,900 yuan.
This comes in the same week that US President Joe Biden announced a quadrupling of tariffs on electric car imports from China.
Like other EV makers, Tesla has been struggling with declining sales in the face of fierce competition from Chinese brands.
The vehicle was unveiled in Shanghai by Neo’s chief executive William Lee, who said the company will compete with Tesla’s Model Y and the Toyota RAV4.
“As technologies evolve and people’s understanding of smart EVs deepens, it’s time to redefine new standards for family cars,” said Mr Li.
The company has started taking orders for the L60 and aims to start deliveries by September.
Neo executives said they plan to launch one new Onvo model a year as part of efforts to expand the family car market.
The brand could help Neo build its presence outside its home country.
However, it faces 100% tariffs in the US and an anti-subsidy investigation launched by the European Union on EV imports from China.
Electric car brands around the world are facing major challenges as they face sluggish sales and increased competition.
In April, Tesla began laying off more than 10% of its global EV workforce.
Later that month, the company announced that its profit for the first three months of the year fell by more than half compared to the same period last year.
Meanwhile, China’s BYD said its profits fell as it suffered from weak demand and a price war in the world’s biggest car market.
