China’s Nio has launched a direct challenge to Tesla’s best-selling Model Y SUV, with the first electric vehicles out of its new lower-priced brand Onvo.

The vehicle was unveiled in Shanghai by Nio's chief executive, William Li, who said the company aimed to rival Tesla's Model Y and the Toyota RAV4. "With technologies evolving and people’s understanding in smart EVs deepening, today it’s time for us to redefine the new standards for family cars," Mr Li said.

Chinese electric vehicle maker Nio on Wednesday launched the first vehicle in its new lower-priced brand Onvo which aims to compete there with Tesla's Model Y, the world's best-selling EV. Nio unveiled the Onvo L60 SUV with a sticker price starting from 219,