BYD beware as Tesla launches upgraded Model Y in China

In the face of a strong challenge from Chinese rival BYD, new-energy vehicle giant Tesla is looking to consolidate its market position in China by upgrading its bestselling model.

The American automaker officially launched the upgraded version of Model Y in China on Friday, with a starting price of 263,500 yuan (US$ 35,848). It marked the start of pre-orders and deliveries will begin in March.

According to the official release, there are various upgrades to the model's exterior, cabin, and range, including adding the world's first diffuse reflective taillights, a lengthened rear seat, and a new silver-coated panoramic glass roof.

The new Model Y's 100-kilometer acceleration is said to be 4.3 seconds, with a range increase of more than 30km, with an expected range of up to 719km, according to CLTC (China Light Vehicle Test Cycle) estimates.

The main production base for the new Model Y is set to be the Shanghai Megafactory, along with two other plants – the Fremont Factory in California, United States, and the Megafactory in Berlin, Germany, according to Tesla officials.

Last year, Tesla produced a total of 1,773,000 NEVs globally, delivering around 1,789,000, according to its 2024 global production and delivery report released earlier this month.

As the mainstay of the production capacity of all four Tesla factories worldwide, the Shanghai Megafactory not only meets domestic demand in China but also exports overseas on a large scale.

Official data showed that the factory rolled out its 3 millionth complete vehicle last year, exported its 1 millionth vehicle overseas, and delivered more than 916,000 vehicles for the year, accounting for half of Tesla's global deliveries.

Among the figures, Model 3 and Model Y totaled about 1.704 million delivered units and 1.679 million produced units, with Model Y continuing to be the world's bestselling passenger car model, as per media estimates.

At the same time, amid fierce NEV competition, Chinese consumers are enjoying probably the lowest prices for Model 3 and Model Y in the world currently, with zero-interest financial packages before January 31 and a 10,000-yuan discount on the final payment for existing Model Y cars.

In the January-August period last year, BYD was No. 1 in China's NEV market with a 34.6 percent share, while Tesla was No. 3 with 6.5 percent, according to China Passenger Car Association figures.

Last August, BYD Seagull surprised the public by overtaking Tesla's Model Y to become the top seller, with sales of 46,800 units in a single month, and also the bestselling pure electric car in China.

It has also been leading pure electric sales since last November, when it topped 50,000 sales in a single month, over 10,000 units more than the second-place Model Y.