Shanghai, September 1 (Reuters) – Tesla on Friday launched the latest and brand new Model 3 in China and other markets that offers a much longer driving range than ever before. Tesla has also launched its new Model 3 in Japan, Middle East, Australia, and European countries, putting immense pressure on rivals who are going to unveil new electric vehicles in the coming days.
China, being the world’s largest automobile market has been under focus of top electric vehicle brands, all fighting for a majority stake in this huge market. In such circumstances, the latest version of Tesla Model 3 comes with a 12% higher starting price than the previous one, base rear-wheel driving model.
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The price increase is seen as a good sign for the Chinese automobile industry as recent price cuts by Tesla had started a price war with the Chinese EV rivals, hampering profits.
The newly restyled version of Model 3 is Tesla’s first new or upgraded car since the launch of its global best-seller, Model Y in 2020. Moreover, Tesla is planning to start manufacturing its cyber truck by the end of 2023.
The introduction of the new Model 3 in China and other markets where Tesla exports, from its base manufacturing hub, suggests that its plant at Shanghai would be the first to start the production of Model 3. Tesla also produces Model 3 at its manufacturing site in Fremont, California.
Coming to the details
The new Tesla Model 3 guarantees a much longer driving range for China than ever before, according to the company’s website. The updated version has a driving range of 606 Km (377 miles) based on China’s testing standards, which is 9% higher than what the base model had to offer in China.
In a statement issued by Tesla’s China operations, the new model comes with a more comfortable interior, a better acoustic system, and a display screen for back-seat passengers. The exterior has minor changes that give the sedan smooth and shiny front and new headlights.
Tesla announced that it has started taking pre-orders and would begin delivering the new Model 3 versions in the last quarter in China. While Australia and other countries would have to wait till January.
In July, Tesla had sold 64,285 electric vehicles that were produced in China, nearly 31% less than a month earlier, as shown by the most recent data for the China Passenger car Association (CPCA).
The Competition
The announcement came days before the auto show organized at Munich, Germany, where the German automakers are expected to launch some new electric vehicles of their own. This includes a new electric CLA model sedan by Mercedes and a new version of VOWG_p.DE ID.7 by Volkswagen.
The first news about the revamping of Tesla Model 3 was first reported by Reuters in November last year. The project was codenamed “Highland” which was aimed at cutting the production costs and boost EV sales, claimed by people involved in the production.
If we look at the Chinese EV market, it is basically dominated by two giant brands, namely Tesla and BYD. Tesla, being the pioneer and the largest electric vehicle manufacturer in the world, has a big presence in the Chinese market and it enjoys a large piece of the Chinese market. However, as we mentioned earlier, Tesla is currently facing a significant drop in sales that had reduced by almost a third.
On the other hand, BYD which is a Chinese electric vehicle company has been giving a tough competition to Tesla, both on local and international fronts. In 2022, BYD became the biggest electric vehicle manufacturer by overtaking Tesla. Similarly, in the Chinese market it is growing at a tremendous pace, as it just managed to increase its profit by 204.7% to reach 10.95 billion yuan ($1.5 billion).
However, China’s passenger vehicle sales shrank for a second consecutive month in July, as consumers are worried about the flailing economy.
