Tesla Model Y is receiving strong interest from the Chinese market after its launch, according to local reports, and is putting pressure on competition in an important segment.
Tesla Model Y in China
As previously reported, Tesla has adopted a new vehicle introduction strategy for the Model Y. Unlike previous vehicle programs, which were launched in different markets with vehicles imported from the Tesla plant in Fremont, California, Tesla is only introducing the Model Y in new markets after the vehicle is being produced there.
In the past nine months, Tesla has expanded Gigafactory Shanghai to prepare for the production of the electric SUV.
The plant more than doubled in size.
In October, Tesla released new photos of the next Model Y Shanghai plant
In November, the automaker also obtained approval for the China-made Model Y from the Ministry of Industry and Information Technology.
Finally, Tesla has started production of Model Y at Gigafactory Shanghai in the past few weeks and last week, the automaker updated the online configurator with the production version – confirming that deliveries will begin this month.
With the launch on the Chinese market, Tesla also updated the price of the electric SUV, which now starts at 339,900 yuan ($ 52,000) for the Long Range Dual Motor version and the Model Y Performance version will start at 369,900 yuan ($ 56,600).
The Y model is successful in the Chinese market
Several local Chinese media are reporting that the start of production and the lower than expected price have already attracted many customers.
Tesla stores with the Model Y on display were flooded by potential buyers during the week.
Gao Shen, an analyst in the manufacturing industries in Shanghai, told the South China Morning Post:
“Competition in the premium electric vehicle segment is expected to increase now that the Model Y is showing signs of conquering a large share of the market. Tesla’s rivals must act to fight and maintain their share. “
Model Y is entering the heart of China’s growing EV startup scene, with the biggest companies, Nio, Xpeng and Li Auto, all owning small electric SUVs.
The segment is growing rapidly and adding Model Y to the mix will be interesting.
Following the launch of Model Y last week, some buyers are already changing their minds according to local reports:
“Local media reported that some drivers who previously ordered cars from Tesla competitors – NIO, Xpeng and Li Auto – have reneged on their contracts and were looking to buy Model Y.”
Although these reports are only anecdotal and we will have to wait until the end of 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 notable. Deliveries began in January 2020, just a year after construction began on the Shanghai plant, and the electric sedan quickly became the country’s best-selling electric vehicle.
A similar situation can happen with the Model Y, which has just started production, but the Tesla appears to be growing rapidly.
A new flyover of the factory drone last week already shows hundreds of Model Y vehicles in the factory parking lot preparing to be shipped:
The planned production capacity is unknown, but it is expected to exceed 200,000 units per year in full production.
Although Tesla could also reduce production of Model 3 at Gigafactory Shanghai to support production of Model Y.
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