Tesla has launched a new version of its best-selling Model Y in China, featuring a redesigned exterior and upgraded interior features aimed at reclaiming market share lost to local rivals like Xiaomi. The new Model Y, priced at 263,500 yuan ($35,900), is 5.4% more expensive than its predecessor. The U.S. automaker revealed the updates through its Weibo social media account, with deliveries expected to begin in March, pending regulatory approval.
The refreshed Model Y boasts a new front light bar, echoing the design of Tesla’s Cybertruck, and a full-width light bar for the tail lights. Additionally, the vehicle now offers heated and ventilated seats for comfort in various weather conditions, as well as a new touchscreen for second-row passengers. The long-range variant has also seen a boost in driving range, now reaching 719 kilometers per charge, up from 688 kilometers.
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The launch comes as Tesla faces growing competition in the Chinese market, with local electric vehicle manufacturers such as BYD and Xiaomi gaining significant ground. In 2023, Tesla’s market share in China’s battery electric vehicle market slipped to 10.4%, down from 11.7% the previous year. Xiaomi’s foray into the electric vehicle market with its SU7 model has further intensified the competition. Xiaomi is set to launch its SUV, the YU7, later this year, directly challenging the Model Y.
Despite these challenges, Tesla remains confident in its ability to retain its position as the world’s most popular electric vehicle, with the Model Y being the best-selling car globally in 2023. The automaker is also expected to release a six-seat variant of the Model Y in China later this year to further expand its offering.
