The Chinese electric car manufacturer NIO intensified competition in the crucial Chinese market on Wednesday with the unveiling of its new budget-friendly model, the L60 SUV, under the "Onvo" brand. With a starting price of 219,900 yuan (approximately 30,500 US dollars), the Onvo is more than ten percent cheaper than the Tesla Model Y, which according to CNBC is the best-selling battery-powered vehicle in China.

The first deliveries of the Onvo are set to begin in September, with pre-orders already available. The market launch is initially planned only for China, but an international sale is also planned, as NIO CEO William Li explained. However, a precise schedule for export has not yet been determined.

Here is the translation of the heading to English:

"Alan Ai from NIO emphasized that the Onvo is set to establish a 'new standard' for family vehicles. The name 'Onvo' is derived from 'On Voyage,' meant to evoke the image of a family enjoying beautiful times together. Ai directly compared the Onvo to Tesla's Model Y, highlighting that the Onvo is more spacious, more agile, and equipped with better suspension. Additionally, it boasts a greater range in certain versions and a driver-assistance program, whereas Tesla's 'Autopilot' is not yet available in China."

In addition to NIO's announcement, another piece of news caused a stir: U.S. President Joe Biden plans to significantly increase tariffs on Chinese electric vehicles and other products. This is intended to curb competition from cost-effective Chinese e-vehicles in the U.S. market. Currently, tariffs on Chinese electric vehicles stand at 27.5 percent, but could be raised to 102.5 percent. According to analysts from Evercore ISI, this will have only minimal economic impacts in the short term since only a few Chinese EVs are present in the U.S. market. However, the higher tariff imposition on batteries and key minerals from China could have more significant effects, as the U.S. is heavily reliant on imports for these items.

This announcement significantly weighed on the stock prices of numerous electric car manufacturers on Wednesday. At the NASDAQ, Lucid's stock fell by 7.05 percent to $2.90, Rivian's by 8.85 percent to $10.20, and Tesla's shares lost 2.01 percent closing at $173.99. ZEEKR, the EV company that was recently listed on the US stock market, ended the day 3.22 percent lower at $26.74 on the NYSE.