Chinese EV maker Nio to launch its lower-priced brand Onvo on May 15

Beijing – China Electric Vehicle Company Nioh said Thursday that it will launch a low-price brand called Onvo on May 15.

The news comes amid fierce competition in China’s electric vehicle market, with a price war forcing Tesla to cut prices. XpengAnother electric vehicle startup also plans to launch a sub-brand called Mona within the next two to three months.

NIO said that the first Onvo model, the L60, will be a “family-centered smart pure electric vehicle priced at around 250,000 yuan, in the same market segment as the Tesla Model Y.” That’s about $34,600.

In comparison, NIO’s SUVs and sedans currently sell for nearly 300,000 yuan or more. Nio delivered 15,620 electric vehicles in April, up from 11,866 the previous month.

The company’s CEO, William Lee, previously told CNBC that the first Onvo car will be a cheaper SUV than the Model Y.

NIO said Onvo stands for “On Voyage” and the brand’s Chinese name “Le Dao” means “The Road to Happiness.” The company sells cars to Europe but did not specify whether the Onvo would be sold outside China.