Tesla launches redesigned Mannequin Y in Asia, looking for to fend off rivals

SHANGHAI (Reuters) -Tesla launched a brand new model of the Mannequin Y, its best-selling automobile, in China on Friday, hoping {that a} redesigned exterior and upgraded options inside will assist it regain market share taken by rivals reminiscent of Xiaomi (OTC:XIACF).

The brand new Mannequin Y is priced from 263,500 yuan ($35,900)，5.4% dearer than the earlier model in China, Tesla (NASDAQ:TSLA)’s second-largest market, the U.S. automaker stated on its Weibo (NASDAQ:WB) social media account. 

Deliveries in China are set to start in March, topic to regulatory approval and Tesla was additionally taking orders for the SUV in lots of different Asia Pacific markets. Particulars about Tesla’s plans for the revamped model in North America and Europe weren’t instantly out there.

The newest Mannequin Y sports activities a brand new gentle bar that stretches throughout the entrance finish, much like Tesla’s Cybertruck, whereas the tailight can also be a full-width gentle bar. Different upgraded options embrace seats that may be heated or ventilated for consolation in all climate situations in addition to a touchscreen for second-row passengers.

The long-range variant now has a driving vary of 719 kilometres per cost, up from 688 km.

Tesla first launched the Mannequin Y in 2020 and it grew to become the world’s best-selling automobile in 2023. The ageing mannequin misplaced some gross sales momentum final yr, damage by competitors from native rivals in China, whereas in different markets demand for electrical autos has weakened.

Tesla was the biggest maker of battery electrical automobiles in China in 2020 however Chinese language EV rivals have more and more made inroads, profitable over prospects with snazzy good automobile options.

The U.S. automaker’s market share in China’s battery electrical automobile market slipped to 10.4% final yr, down from 11.7% in 2023.

BYD (SZ:002594) is at present China’s greatest vendor of EVs whereas client electronics maker Xiaomi stormed the electrical automobile market final yr, delivering greater than 130,000 of its first mannequin, the SU7.

Even with a revamped Mannequin Y, analysts stated it was uncertain that Tesla will regain the momentum it used to have in China.

Xiaomi will launch its first SUV, the YU7, in June or July, and Xpeng (NYSE:XPEV) plans to launch the G7.

Each fashions share “comparable options with the Mannequin Y, reminiscent of a youthful design and technological capabilities, making them direct rivals,” stated Shaochen Wang, a China-based auto analyst at Counterpoint.

Wang additionally famous that Tesla had but to finalise the complete rollout of its superior driver help software program, which is named “Full Self-Driving”, in China. That might put it on the again foot towards a number of Chinese language EV auto manufacturers which have additionally developed superior good driving options.

Tesla plans to launch a six-seat variant of the Mannequin Y in China late this yr, sources have beforehand stated.

($1 = 7.3314 Chinese language yuan)