Nio Shows Model Y Rival and Bids For Audi Factory

Chinese battery-electric-vehicle maker Nio this week shows a mass-market competitor to Tesla Model Y under its new Onvo brand and is making a bid to take over an idled Audi factory in Belgium in order to grow its business in the EU while skirting rising tariffs on Chinese BEVs.

The action in the BEV market in China and the EU countries is at the low end of the market. Chinese automakers have lower costs and a more mature supply chain, especially as it relates to batteries, prompting the EU, the U.S. and Canada to levy stiff tariffs on Chinese BEVs until Western automakers can catch up with more affordable BEVs than have been on sale so far.

Starting at $21,200 (RMB 149,900), the new midsize family CUV is priced that low with a battery subscription ownership model. Last May, Nio had touted the BEV with a $30,000-plus (RMB 219,900 yuan) presale pricetag.

With the battery included, the Nio Onvo L60 comes in even lower than the presale price, starting at $29,300 (RMB 206,900). That’s for the 60-kWh battery model with up to 341 miles (555 km) of range on the China Light-Duty Vehicle Test Cycle (CLTC) . The larger (85-kWh) battery model is available starting at $33,400 (RMB 235,900) and has a CLTC range of up to 454 miles (730 km).

Nio claims its electric SUV has better energy consumption than the Tesla Model Y (12.1 kWh/100 km (62 mi.) vs. 12.5 kWh/100 km).

With a wheelbase of 116 ins. (2,950 mm), the Onvo L60 is longer than the  Model Y’s 114 ins. (2,890 mm), meaning slightly more interior room for driver and passengers.

Meanwhile, Nio, reports Belgian publication De Tijd, will submit an official offer to purchase Audi’s Belgium plant by Sept. 23, intending to ramp up production as soon as possible to avoid the EU’s newly imposed import taxes on China-made cars.

Audi is looking for a buyer for the plant, which was making the Q8 E-tron, having sent 3,000workers home without pay this summer. Audi is part of the Volkswagen Group, and the company’s Volkswagen brand is also considering closing a plant in Germany for the first time since its founding after World War II.

VW and Audi are hurting from over-investing in BEV production, competition in the EU from cheaper Chinese BEVs and flagging sales in China. Stellantis is also considering closing production capacity in Europe.

Ironically, it is Chinese automakers that could be the ones putting German and Belgian workers back on regular paychecks, which is exactly the result EU officials figured would happen if they raised tariffs high enough.