Tesla introduced a revamped version of its best-selling Model Y in China on Friday, hoping to recover market share lost to competitors like Xiaomi. Priced at 263,500 yuan ($35,900), the new Model Y is 5.4% more expensive than the previous model. Deliveries are scheduled to begin in March, pending regulatory approval, with details about its release in other markets yet to be revealed.
The redesigned Model Y features a new light bar across the front, resembling Tesla’s Cybertruck, and a full-width light bar at the rear.
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Additional upgrades include heated and ventilated seats for all weather conditions and a new touchscreen for rear passengers. The long-range variant’s driving range has also been increased to 719 kilometers per charge, up from 688 kilometers.
Launched in 2020, the Model Y became the world’s best-selling car in 2023. However, it faced declining sales momentum in 2024 due to increasing competition from Chinese electric vehicle makers, including BYD, which is now the largest EV seller in China. Xiaomi, which entered the EV market last year, delivered over 130,000 units of its first model, the SU7, and plans to launch the YU7 SUV in mid-2024, directly competing with the Model Y.
Tesla’s market share in China’s battery electric vehicle market dropped to 10.4% in 2024, down from 11.7% in 2023. The company is also expected to launch a six-seat version of the Model Y in China later this year.
