Tesla is planning to produce a six-seat variant of its Model Y electric vehicle in China starting in late 2025, aiming to increase the appeal of its best-selling EV in the competitive Chinese market.
The introduction of a six-seater version of the Model Y is a strategic move to maintain Tesla's competitive advantage in the Chinese market. Tesla sells a seven-seater Model Y in the US, but a cramped third row makes it unpopular in China.
Tesla is in the process of revamping the Model Y under a program codenamed Juniper, with a new five-seater version expected to launch in early 2025.
The company plans to increase production of the Model Y in China by double digits and has requested suppliers to prepare for this expansion.
Tesla's China plant is looking to expand on 172 acres of former farmland for increased production, pending approval.
The carmaker's sales of China-made electric vehicles grew 3% in August from a year earlier, and deliveries of China-made Model 3 and Model Y vehicles rose 17% from July. The vehicles made in Tesla's Shanghai gigafactory are sold within China and exported to foreign markets, including Europe.
Domestic rivals in China, including BYD, Leapmotor, and Li Auto, are introducing competitive models with roomier interiors at lower prices, putting pressure on Tesla.
Tesla has seen a 6% year-on-year increase in domestic and overseas Model 3 deliveries during January-June, driven by last year's renewed version.
The Model Y remains the best-selling car in China, with over 207,800 units sold from January to June. Tesla expects its sales to rise further in the third quarter, driven by demand in smaller cities.
The introduction of the Full Self-Driving feature planned for year-end could boost sales in China.
This article was written in collaboration with Generative AI news company Alchemiq
Sources: Reuters, Benzinga, Economic Times, Yahoo Finance, News.az, Jornal Económico, Dubai Eye 103.8, Mezha Media, BusinessWorld Online, Automotive News Europe, Investing.com, Seeking Alpha, StreetInsider.