Tesla has faced repeated criticisms over its self-driving and driver assistance programs
AFP

Tesla on Friday launched a redesigned version of its best-selling vehicle, the Model Y, in China, positioning itself to compete with its tough rival, Xiaomi.

The sports utility vehicle features a refreshed exterior and upgraded interior features to attract more customers.

Among Tesla's lineup, the Model Y has emerged as one of China's top-selling electric vehicles.

Tesla's touts the Model Y as the "world's most popular electric vehicle."

The new version is priced 5.4% higher than its predecessor in China, the company's second-largest market.

The basic rear-wheel drive Model Y Juniper will start at 263,500 yuan, approximately $35,900, according to Bloomberg.

While the new model has been officially launched in China, deliveries are anticipated to begin in March, pending government approval.

The upgrades in the latest Model Y include significant changes to its look, including a design that draws similarities to the Tesla Cybertruck, particularly with a new light bar that stretches across the front of both vehicles. The taillights also mirror this modern design with a full-width light bar.

The company says the seating has been enhanced for passenger comfort, now offering the option for both heated and ventilated seats.

Passengers in the second row will also have a dedicated touchscreen for easy access to controls.

The driving range of the long-range variant has increased from 427 miles (688 km) to 447 miles (719 km).

The Model Y was launched in 2020, the same year Tesla was recognized as the largest EV manufacturer in China. By 2023, the Model Y had become the world's best-selling car, Reuters reported.

However, the rise of competitors, particularly from China, has begun to affect sales of the EVs in the region.

Demand in other markets has also slowed considerably.

Currently, Tesla faces competition from two prominent local EV manufacturers in China: BYD, recognized as the largest seller of EVs in the country, and Xiaomi, which began selling EVs last year and has already delivered over 130,000 units of its first model, the SU7.

Xiaomi is also planning to challenge the Model Y through a planned launch of its first SUV in June or July.

Tesla China