BEIJING — Chinese language electrical automobile firm Nio stated Thursday it’ll launch its lower-priced model known as Onvo on Could 15.

The announcement comes amid a value warfare in China’s extremely aggressive electrical automobile market that is pressured Tesla to chop costs. Xpeng, one other EV startup, additionally plans to launch a sub-brand known as Mona within the subsequent two or three months.

Nio stated the primary Onvo mannequin, the L60, will likely be a “family-centric good BEV priced round RMB 250,000, in the identical section as Tesla Mannequin Y.” That is about $34,600.

In distinction, Nio’s SUVs and sedans at the moment promote for almost 300,000 yuan or way more. Nio delivered 15,620 electrical vehicles in April, up from 11,866 vehicles the prior month.

The corporate’s CEO William Li beforehand advised CNBC that the primary Onvo automobile will likely be an SUV cheaper than the Mannequin Y.

Nio stated Onvo stands for “On Voyage,” and that that the Chinese language title of the model, “Le Dao,” means “Path to Happiness.” The corporate sells vehicles to Europe, however did not specify whether or not Onvo can be out there exterior China.