From CNBC: 2024-04-26 05:59:20

Chinese electric car start-ups Nio and Xpeng plan to release more affordable cars this year, moving away from the premium market. Nio’s new SUV will be cheaper than Tesla’s Model Y. The new cars will compete with brands like BYD and Volkswagen. These changes come amid a price war in China’s electric car market.

Nio will launch a new brand called Onvo in mid-May, targeting families. Xpeng, with plans for a sub-brand called Mona, aims for a lower price range below Nio’s target. Both companies are confident in their ability to bring differentiated technology to the mass market. Xpeng’s driver-assist software is a key feature in China.

Despite the launch of more affordable models, BYD continues to focus on the lower end of the mass market. The company also offers premium and luxury cars under new brands. BYD is set to release a new hybrid-powered car in the second quarter. Tesla’s Model Y remains popular but faces competition from the new market entries.

Read more: Chinese EVs Nio, Xpeng turn to mass market for growth