Chinese electric car manufacturer Nio has revealed its competitor to the Tesla Model Y

Chinese electric car maker Nio has unveiled the first car from its new low-priced Onvo brand, in a direct challenge to Tesla’s best-selling car.

With prices starting at 219,900 yuan (US$30,465, £23,990), the L60 SUV is 10% cheaper than the world’s most popular electric car, Tesla’s Model Y, which is priced at 249,900 yuan.

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

Like other electric car makers, Tesla is suffering from declining sales in the face of intense competition from Chinese brands.

The vehicle was unveiled in Shanghai by Nio CEO William Li, who said the company aims to compete with Tesla’s Model Y and Toyota RAV4.

“As technologies develop and people’s understanding of smart electric vehicles deepens, today is the time to redefine new standards for family cars,” Li said.

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

The Onvo brand could also help Nio expand its business beyond its home country.

However, it faces 100% tariffs in the US and an ongoing anti-subsidy investigation launched by the European Union into electric vehicle imports from China.

Electric vehicle brands around the world face significant challenges as they face slowing sales and increasing competition.

In April, Tesla began laying off more than 10% of its global electric vehicle workforce.

Later that month, the company announced that its profits for the first three months of the year had fallen by more than half compared to the same period last year.

Meanwhile, Chinese company BYD said its profits fell because it was affected by weak demand and a price war in the world’s largest automobile market.