Tesla unveils redesigned Model Y in China to outpace competitors
By Cygnus | 10 Jan 2025
Tesla has launched a revamped version of its popular Model Y in China, aiming to strengthen its position in the highly competitive electric vehicle (EV) market. The redesign features both exterior and interior upgrades, poised to attract buyers and fend off competition from Chinese rivals like Xiaomi and BYD.
The refreshed Model Y, renowned as the world’s best-selling electric car, now starts at 263,500 yuan (approximately $35,900) in China — reflecting a 5.4% price increase compared to the previous version. Deliveries are expected to begin in March 2025, pending regulatory approvals, Tesla announced on its Weibo account.
The new model boasts several enhancements:
- A full-width light bar on both the front and rear, echoing the futuristic design of Tesla’s Cybertruck.
- Upgraded seating with heating and ventilation for improved comfort in all weather conditions.
- A second-row touchscreen for added convenience.
Additionally, the long-range variant offers an improved driving range of 719 kilometers per charge, up from the previous 688 kilometers.
Market context: battling local rivals
Since its debut in 2020, the Model Y has gained immense popularity, becoming the world’s best-selling car in 2023. However, Tesla has faced increasing competition in China, its second-largest market. Local automakers, including BYD and Xiaomi, have eroded Tesla’s market share by offering innovative smart car features and cost-effective EVs.
In 2023, Tesla’s market share in China’s battery electric vehicle segment dropped to 10.4%, from 11.7% the previous year. Meanwhile, Xiaomi delivered over 130,000 units of its debut model, the SU7, in 2023 and is set to launch its first SUV, the YU7, later this year.
Looking Ahead
To regain momentum, Tesla plans to release a six-seat version of the Model Y in China by the end of this year. While details about the revamped Model Y’s rollout in other markets remain undisclosed, this strategic move underscores Tesla’s commitment to innovation and market leadership in the EV sector.
With the updated Model Y, Tesla aims to reinvigorate its appeal and maintain its status as a key player in China’s dynamic EV landscape.
FAQs about the Tesla redesigned Model Y launch in China
1. How much does the new Tesla Model Y cost in China?
The starting price for the redesigned Model Y in China is 263,500 yuan (approximately $35,900), which is 5.4% higher than the previous version.
2. When will the new Model Y be available in China?
Deliveries are expected to begin in March 2025, subject to regulatory approval.
3. Will the redesigned Model Y be available in other countries?
Tesla has not yet disclosed plans for the availability of the revamped Model Y in other markets.
4. How does the new Model Y compare to its predecessor in terms of driving range?
The long-range variant of the new Model Y offers a driving range of 719 kilometers per charge, an improvement from the previous model’s 688 kilometers.
5. Why is Tesla launching a redesigned Model Y in China?
The redesign aims to help Tesla regain market share in China, where competition from local EV makers like BYD and Xiaomi has been intensifying.
6. Who are Tesla’s main competitors in China’s EV market?
Key competitors include:
- BYD: China’s largest EV maker.
- Xiaomi: A consumer electronics giant that recently entered the EV market, delivering over 130,000 units of its SU7 model in 2023.
7. What is Tesla’s market share in China’s EV segment?
Tesla’s market share in China’s battery electric vehicle market was 10.4% in 2024, down from 11.7% in 2023.
8. Are there plans for additional variants of the Model Y in China?
Yes, Tesla plans to launch a six-seat variant of the Model Y in China later this year.
9. What makes the Model Y the world’s best-selling electric vehicle?
The Model Y’s combination of range, performance, features, and Tesla’s strong brand appeal has contributed to its global popularity.