SHANGHAI (Reuters) -Tesla launched a new version of the Model Y, its best-selling car, in China on Friday, hoping that a redesigned exterior and upgraded features inside will help it regain market share taken by rivals such as Xiaomi (OTC:XIACF).
The new Model Y, the world's most popular electric vehicle, is priced from 263,500 yuan ($35,900)，5.4% more expensive than the previous version in China, Tesla (NASDAQ:TSLA)'s second-largest market, the U.S. automaker said on its Weibo (NASDAQ:WB) social media account.
Deliveries in China are set to begin in March, subject to regulatory approval. Details about Tesla's plans for the revamped version in other markets were not immediately available.
The latest Model Y sports a new light bar that stretches across the front end, similar to Tesla's Cybertruck, while the tailight is also a full-width light bar. Other upgraded features include seats that can be heated or ventilated for comfort in all weather conditions as well as a touchscreen for second-row passengers.
The long-range variant now has a driving range of 719 kilometres per charge, up from 688 km.
Tesla first launched the Model Y in 2020 and it became the world's best-selling car in 2023. The ageing model lost some sales momentum last year, hurt by competition from local rivals in China, while in other markets demand for electric vehicles has weakened.
Tesla was the largest maker of battery electric cars in in China in 2020 but Chinese EV rivals have increasingly made inroads, winning over customers with snazzy smart car features.
BYD (SZ:002594) is currently China's biggest seller of EVs while consumer electronics maker Xiaomi stormed the electric car market last year, delivering more than 130,000 of its first model, the SU7. Xiaomi will launch its first SUV, the YU7, in June or July, directly challenging the Model Y.
Tesla's market share in China's battery electric vehicle market slipped to 10.4% last year, down from 11.7% in 2023.
Tesla plans to launch a six-seat variant of the Model Y in China late this year, sources have previously said.
($1 = 7.3314 Chinese yuan)