Tesla launches new Model 3 in China with longer vary

AFP (file image)

Tesla on Friday unveiled a restyled Model 3 with an extended driving vary in China and different export markets for its Shanghai manufacturing facility together with Europe, placing stress on rivals.

In China, the world’s largest auto market and Tesla’s second-largest after the United States, the refreshed model of the Model 3 got here with a beginning worth 12 per cent greater than the earlier, base rear-wheel drive mannequin.

At the identical time, Tesla reduce the costs in China and the United States for its premium Model S and Model X by between about 14 per cent and 21 per cent.

Raising the bottom worth on the Model 3, Tesla’s best-selling mannequin after the Y, may assist defend margins, however the worth cuts for its higher-end fashions underscored the continued stress EV-makers face, particularly in China the place Tesla sparked a worth struggle with its Chinese rivals earlier this 12 months.

The up to date model of the Model 3 was Tesla’s first change to its mass-market automotive line-up because it launched its world best-seller, the Model Y, in 2020.

It was additionally the primary time Tesla had launched a brand new mannequin in China forward of the United States, its house market, and comes because it faces intensifying competitors on worth and options from rivals led by bestselling BYD.

Tesla didn’t announce a launch date for the brand new Model 3 within the US market, the place it presently gives reductions of greater than $5,000 on a few of these autos in stock. The firm additionally makes the Model 3 at its plant in Fremont, California.

Tesla mentioned it might debut the brand new Model 3 at a commerce honest in Beijing on Saturday and a few of its new options, together with a rear show for back-seat passengers, appeared geared toward Chinese automotive patrons.

Tesla mentioned the brand new mannequin for China additionally featured a greater acoustic system, a extra snug inside and extra airbags. Images of the outside confirmed small modifications that gave the sedan a sleeker entrance and new headlights.

The new Model 3 additionally guarantees an extended driving vary. The customary model has a rated vary of 606 km primarily based on China’s testing requirements. That’s about 9 per cent greater than the bottom mannequin it replaces in China.

Tesla mentioned it might additionally present the brand new mannequin on the Munich auto present. German automakers are anticipated to make use of that stage to announce a run of recent EVs partly in response to China’s fast-shifting market. Those embrace a brand new model of the Volkswagen and a brand new electrical CLA mannequin sedan from Mercedes.

Tesla didn’t give any particulars in regards to the new Model 3’s battery, however an individual with data of the options mentioned it was the identical lithium-iron phosphate (LFP) battery from CATL for the bottom mannequin.

Tesla’s China gross sales elevated nearly 49 per cent within the first half, in comparison with a low base in 2022 when COVID lockdowns disrupted manufacturing and gross sales. Model Y gross sales had been greater than double gross sales for Model 3 in that interval.

Tesla mentioned it had began taking orders for the brand new Model 3 and would start deliveries in China within the fourth quarter. It additionally started taking reservations for the brand new automotive in different markets the place it exports from Shanghai, together with the Middle East, Japan and Australia.

In China, the brand new Model 3 begins at 259,900 yuan ($35,807).