Tesla starts selling Shanghai-made Model Y electric SUVs in surprise launch as rivalry heats up in world’s largest EV market

Tesla’s Long Range version of the Model Y, to be built at its Gigafactory 3 plant in Shanghai, will start from 339,000 yuan (US$52,074)

The Shanghai-made Model Ys will come with higher specifications than California-made versions to suit the preferences of Chinese customers

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Published: 3:03pm, 1 Jan 2021Updated: 10:51pm, 1 Jan 2021

Tesla said it would begin taking orders for the Model Y all-electric sports utility vehicle in China on New Year’s Day with a 30 per cent price markdown, in an unexpected launch of its second made-in-Shanghai model as competition ratchets up in the world’s largest vehicle market.

Tesla’s Long Range version of Model Y, to be built at its Gigafactory 3 plant in Shanghai, will start from 339,000 yuan (US$52,074), excluding a government subsidy to prod customers to replace their petrol guzzlers for new energy vehicles (NEVs), cheaper than the price quoted six months ago when presale orders first became available for a launch expected in mid January. The Performance Range of Model Y will start from 369,900 yuan, 31 per cent cheaper than the presale quotation.

The surprise launch, with the lower price points, underscores the intense competition in China’s market for NEVs, as electric cars are also referred to. The Chinese government is throwing billions of yuan worth of incentives, subsidies and cheap loans to nurture a home-grown industry where domestic marques will eventually make up one of every five NEVs on the country’s roads, under the Made in China 2025 industrial master plan.

“The sharp prices cuts [on Model Y] are set to fuel competition in the premium NEV segment,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “Tesla is turning up the pressure on its global and Chinese rivals in the Chinese market, turning the customers into the beneficiaries, hence boosting overall NEV sales in China.”

SCMP Infographics: New energy vehicles and the Made in China 2025 industrial master plan

Model Y, the second Tesla vehicle to be made in Shanghai after the bestselling Model 3, can go as far as 594km (369 miles) on a single charge, with a top speed of 217km/h. The model, sporting a panoramic windscreen in the front, will have higher specifications than California-made Model Ys to cater to the preferences of Chinese customers. They include such refinements as wood panel detailing, heated steering wheels and high-efficiency particulate air (Hepa) filters for China’s frigid winters and air pollution.

Online orders started on New Year’s Day, and the first delivery can be expected within the month, Tesla said.

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