Tesla launched a redesigned version of its best-selling Model Y in China on Friday, aiming to regain market share from growing competitors like Xiaomi. The updated Model Y, which starts at 263,500 yuan ($35,900), represents a 5.4% price increase over the previous model. Deliveries are expected to begin in March, pending regulatory approval, with Tesla also taking orders across other Asia Pacific markets.
Key upgrades include a new light bar on the front and rear, reminiscent of Tesla's Cybertruck, as well as enhanced comfort features like heated and ventilated seats. The long-range variant now boasts a driving range of 719 kilometers per charge, up from 688 km in the previous version.
Despite being the world’s best-selling car in 2023, the Model Y has faced slowing sales in the face of increasing competition in China, where local electric vehicle makers like BYD and Xiaomi have made significant strides. Tesla's market share in China fell to 10.4% in 2024, down from 11.7% the previous year.
In addition to the revamped Model Y, Tesla plans to introduce a six-seat variant in China later this year. However, analysts remain skeptical about whether the updated model will allow Tesla to regain its former dominance, especially as competitors such as Xiaomi and Xpeng introduce vehicles with similar features and advanced smart driving technology.