Nio is gearing up to challenge Tesla’s dominance in the Chinese electric vehicle market with the launch of its new Onvo L60 SUV. Scheduled for release later this month, the L60 is set to make waves with its competitive pricing and innovative features.

The Onvo L60 will be priced at 206,900 yuan (US$29,267), significantly undercutting Tesla’s Model Y, which starts at 249,900 yuan. This price advantage positions the L60 as an attractive alternative for budget-conscious consumers seeking an electric SUV.

Onvo’s CEO, Ai Tiecheng, highlighted the benefits of the new model during its unveiling, noting that it incorporates advanced battery-swapping technology. This feature allows drivers to quickly exchange their battery in just a few minutes, enhancing convenience and reliability. The L60 offers a driving range of 555 km, closely matching the Model Y’s range of 554 km.

In addition to its competitive pricing and battery-swapping capability, Onvo plans to expand its market presence aggressively. By the end of the year, the company aims to open 200 stores across 120 cities in mainland China to attract more customers.

For those opting for battery rental, the one-time payment is set at 149,900 yuan, with a monthly subscription fee of 599 yuan.