Tesla has launched a revamped version of its best-selling Model Y in China, aiming to reclaim market share from local competitors like BYD and Xiaomi. The new Model Y boasts a refreshed design, upgraded features, and improved range to attract buyers in China and other Asia Pacific markets.
New design and features
The redesigned Model Y introduces a sleek new light bar on the front, reminiscent of Tesla’s futuristic Cybertruck, and a full-width tail light at the rear. Inside, the SUV offers enhanced comfort with heated and ventilated seats suitable for all weather conditions. Passengers in the second row will also enjoy a dedicated touchscreen for added convenience.
One of the standout upgrades is the improved driving range. The long-range variant now offers a range of 719 kilometres per charge, up from 688 km, making it a strong contender in the EV market.
Price and Availability
Tesla has priced the updated Model Y at 263,500 yuan (USD 35,900), approximately 5.4 per cent higher than the previous version in China, as per a Reuters report. Deliveries in China are expected to begin in March, pending regulatory approval. Tesla is also taking orders in other Asia Pacific markets, though details for North American and European launches are not yet available.
Challenging the Competition
The Model Y, originally launched in 2020, became the world’s best-selling car in 2023. However, sales momentum has slowed due to growing competition, particularly in China. Tesla’s market share in China’s battery electric vehicle (BEV) segment declined from 11.7 per cent in 2023 to 10.4 per cent last year.
Local rivals like BYD and Xiaomi have made significant inroads. Xiaomi’s first EV, the SU7, delivered over 130,000 units last year, and the company plans to launch its first SUV, the YU7, by mid-2025. Xpeng is also set to release its G7 model soon, offering similar features to the Model Y.
Analysts Weigh In
According to Shaochen Wang, an auto analyst at Counterpoint, the competition is fierce. “Xiaomi and Xpeng’s youthful designs and advanced technological features make them direct competitors to Tesla’s Model Y,” Wang noted. Tesla’s lack of full deployment of its "Full Self-Driving" software in China could also hinder its competitiveness against local brands with advanced smart driving capabilities.
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