**Mass Appeal: Nio and Xpeng’s Electric Ride into the Budget Segment**
China’s electric vehicle (EV) giants, Nio and Xpeng, are shifting their focus to a less affluent market, introducing new brands and models to cater to budget-conscious consumers.
**Tesla’s Rival at a Lower Price Point**
Nio’s debut mass market SUV will undercut Tesla’s Model Y, CEO William Li told LA News Center. With a price tag below 250,000 yuan (,197), this SUV aims to challenge Tesla’s dominance in the Chinese electric SUV market.
**From Premium to Popular**
Once focused on premium vehicles priced upwards of ,000, Nio and Xpeng are now eyeing the mass market. Their new brands and models seek to offer the same cutting-edge features at a more accessible price point.
**Competition Heats Up**
Nio and Xpeng’s foray into the budget segment brings them into direct competition with homegrown rival BYD and global automaker Volkswagen, further intensifying the price war in China’s new energy car market.
**Onvo: A Family Affair**
Nio plans to launch its new brand, Onvo, in mid-May. The name, meaning “happy time,” encapsulates the brand’s target audience: families. With a price around ,000, Onvo aims to provide families with a technologically advanced and affordably priced EV.
**Mona: Xpeng’s Value Proposition**
Xpeng’s sub-brand, Mona, will launch in the coming months, targeting a price range below 150,000 yuan (,700). Xpeng aims to leverage its technological advancements, particularly in driver-assist software, to differentiate Mona in the budget segment.
**Tesla in Focus**
Despite undercutting the Model Y, Li confirmed that Onvo’s first car will cost around ,000, still higher than BYD’s offerings.
**BYD’s Dominance**
BYD has established a strong presence in the lower end of the mass market, with offerings ranging from under 100,000 yuan to over 1 million yuan. In addition to its successful budget-friendly models, BYD has also introduced premium and luxury vehicles in recent years.
As China’s EV market continues to evolve, Nio and Xpeng’s shift towards the mass segment positions them for continued growth and competition in the increasingly crowded electric car landscape.
