The new Model Y, recognized as the most popular electric vehicle globally, starts at a price of 263,500 yuan ($35,900), reflecting a 5.4% increase compared to the previous model in China, which is Tesla's second-largest market, as announced on the company's Weibo account.
Deliveries in China are expected to commence in March, pending regulatory approval. Information regarding Tesla's strategy for the updated model in other regions has not yet been disclosed.
The latest iteration of the Model Y features a new light bar that spans the front, reminiscent of Tesla's Cybertruck, along with a full-width light bar for the taillights. Additional enhancements include heated and ventilated seats for year-round comfort and a touchscreen for passengers in the second row.
The long-range version now offers a driving range of 719 kilometers per charge, an increase from the previous 688 kilometers.
Since its launch in 2020, the Model Y has become the best-selling car worldwide in 2023. However, the aging model experienced a decline in sales momentum last year due to increased competition from local brands in China, while demand for electric vehicles has softened in other markets.
In 2020, Tesla was the leading manufacturer of battery electric vehicles in China, but local competitors have made significant strides, attracting customers with advanced smart car features.
Currently, BYD holds the title of China's largest EV seller, while consumer electronics company Xiaomi entered the electric vehicle market last year, delivering over 130,000 units of its inaugural model, the SU7. Xiaomi is set to launch its first SUV, the YU7, in June or July, posing a direct challenge to the Model Y.
Tesla's market share in China's battery electric vehicle sector fell to 10.4% last year, down from 11.7% in 2023.
Additionally, Tesla is reportedly planning to introduce a six-seat variant of the Model Y in China later this year, according to previous sources.