According to local reports, Tesla Model Y received strong interest from the Chinese market after its launch, putting pressure on competition in a key segment.
Tesla Model Y in China
As we reported earlier, Tesla has followed a new vehicle launch strategy for Model Y. Unlike previous vehicle programs introduced in different markets with vehicles imported from Tesla’s Fremont plant in California, Tesla Model Y first launches in new markets once the vehicle is produced there.
Over the past nine months, Tesla Gigafactory has expanded Shanghai to prepare for the production of the electric sports utility vehicle.
The plant has more than doubled.
In October, Tesla released new photos of the upcoming Model Y Shanghai factory
In November, the carmaker also received approval for Model Y, manufactured in China, from the Ministry of Industry and Information Technology.
Finally, Tesla has started production of the Model Y at Gigafactory Shanghai over the past few weeks, and last week the carmaker updated the online configurator with the production version, confirming that deliveries will begin this month.
With the launch in the Chinese market, Tesla also updated the price of the electric sport utility vehicle, which now starts at 339,900 yuan ($ 52,000) for the Long Range Dual Motor version, and the Model Y Performance version starts at 369,900 yuan ($ 56,600).
Model Y makes a splash in the Chinese market
Several local Chinese media reported that the start of production and the lower than expected price had already attracted many customers.
Tesla stores with the Model Y on display were flooded with potential buyers during the week.
Gao Shen, a manufacturing analyst in Shanghai, told the South China Morning Post:
‘Competition in the premium electric vehicle segment will increase now that Model Y is showing signs of gaining a large market share. Tesla’s competitors must act to fight back to retain their share. ”
Model Y is on the rise of the booming EV startup scene in China, with the largest companies, Nio, Xpeng and Li Auto, all owning small electric SUVs.
The segment is growing fast and the addition of Model Y to the mix is going to be interesting.
Following the launch of the Model Y last week, some buyers are already changing according to local reports:
“Local media reported that some drivers who had previously ordered cars through Tesla challengers – NIO, Xpeng and Li Auto – had given up their contracts and wanted to buy Model Y.”
Although these reports are only anecdotal, we will have to wait until later this year to get a better idea of the impact of Model Y on the market.
Tesla Model Y Production in China
The launch of the Model 3 production in China was quite remarkable. Deliveries began in January 2020, just a year after the factory started in Shanghai, and the electric sedan quickly became the best-selling electric vehicle in the country.
A similar situation could happen with Model Y, which has just started production, but it looks like Tesla is going pretty fast.
In a new drone from the factory last week, hundreds of Model Y vehicles are already being prepared in the car park of the factory to be sent:
The planned production capacity is unknown, but it is expected to be more than 200,000 units per year at full production.
Although Tesla was also able to reduce Model 3 production in Gigafactory Shanghai to support Model Y production.
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