Tesla Launches Updated Model Y in China

Tesla introduced an updated version of the Model Y, its best-selling vehicle, in China on Friday. The company is aiming to recover lost market share with new features like heated seats and an improved acoustics system. The updated Model Y now starts at 263,500 yuan ($35,900), a 5.4% price increase over the previous model. The announcement was made on Tesla’s Weibo account.

The long-range version of the Model Y now offers a driving range of 719 kilometres per charge, up from 688 kilometres. The Model Y, which was first launched in 2020, became the world’s best-selling car in 2023. However, sales dropped last year due to stiff competition from domestic Chinese automakers and slowing global demand for electric vehicles.

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Tesla plans to launch a six-seat version of the Model Y later this year, according to earlier reports. Information about the availability of the updated Model Y in global markets has not been shared yet.

The company’s dominance in China’s EV market has also declined in recent years. Tesla’s share of the country’s battery-electric vehicle market dropped to 10.4% last year, down from 11.7% in 2023. Local competitors have gained traction by offering advanced smart features, making it a challenging market for Tesla.

Tesla remains focused on enhancing its vehicles to compete with emerging rivals like Xiaomi and others. With the launch of the revamped Model Y, the company aims to reassert its position in the growing EV market in China.