September 01, 2023 (MLN): Tesla on Friday unveiled a restyled Model 3 with a longer driving range in China and other export markets for its Shanghai factory including Europe, putting pressure on rivals, as Reuters reported.

In China, the world's largest auto market and Tesla's second-largest after the United States, the refreshed version of the Model 3 came with a starting price 12% higher than the previous, base rear-wheel drive model.

At the same time, Tesla cut the prices in China and the United States for its premium Model S and Model X by between about 14% and 21%.

Raising the base price on the Model 3, Tesla's bestselling model after the Y could help protect margins, but the price cuts for its higher-end models underscored the continued pressure EV makers face, especially in China where Tesla sparked a price war with its Chinese rivals earlier this year.

The updated version of the Model 3 was Tesla's first change to its mass-market car line-up since it launched its global best-seller, the Model Y, in 2020.

It was also the first time Tesla had launched a new model in China ahead of the United States, its home market, and comes as it faces intensifying competition on price and features from rivals led by bestselling BYD.

Tesla did not announce a launch date for the new Model 3 in the U.S. market, where it currently offers discounts of more than $5,000 on some of those vehicles in inventory.

The company also makes the Model 3 at its plant in Fremont, California.

China-First Debut

Tesla said it would debut the new Model 3 at a trade fair in Beijing on Saturday and some of its new features, including a rear display for back-seat passengers, seemed aimed at Chinese car buyers.

Tesla said the new model for China also featured a better acoustic system, a more comfortable interior, and additional airbags.

Images of the exterior showed small changes that gave the sedan a sleeker front and new headlights.

The new Model 3 also promises a longer driving range. The standard version has a rated range of 606 km (377 miles) based on China's testing standards.

That's about 9% higher than the base model it replaces in China.

Tesla said it would also show the new model at the Munich auto show. German automakers are expected to use that stage to announce a run of new EVs partly in response to China's fast-shifting market.

Those include a new version of the Volkswagen ID.7 and a new electric CLA model sedan from Mercedes.

Copyright Mettis Link News

Posted on: 2023-09-01T11:29:01+05:00