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South China morning post
Tesla’s Shanghai-made Model Y is well received as Chinese buyers rush to order competitively priced SUVs
Tesla’s Shanghai-made Model Y has received an initial enthusiastic response from Chinese customers eager to order the battery-powered SUV, after the automaker priced it much lower than they expected. wait until the end of February for deliveries to begin, according to staff at a company showroom on Shibo Avenue in Pudong, Shanghai. “The prices are so attractive that we can’t resist,” said Chen Zhiyi, a customer visiting the showroom who plans to order a Model Y. “It won’t be long before we see a lot of Model Ys clogging the streets.” Get the latest insights and analysis from our Global Impact newsletter on the great stories originating from China. On January 1, Tesla announced the official launch of the Model Y in China and began taking orders from customers. On Sunday, at least 30 customers were seen closely inspecting a Gigafactory-made Model Y on display in the Pudong showroom. Customers took turns chatting with salespeople to learn more about the car, the sales procedure, and sitting in the driver’s seat to get a feel for the car. Tesla has cut the prices of its Chinese-made Model Y cars to woo drivers in the world’s largest electric vehicle market, increasing pressure on its global and Chinese rivals who focus on the premium segment. Model Y starts at 339,000 yuan (US $ 52,074), excluding a government subsidy, 30 percent cheaper than the price quoted six months ago when pre-orders could first be placed. “Competition in the premium electric vehicle segment will increase as the Model Y shows signs of grabbing a large market share,” said Gao Shen, an independent analyst of manufacturing industries in Shanghai. “Tesla’s rivals have to take action to fight back and keep their stake.” Pricing for Tesla’s competitors, such as Xpeng Motor’s P7 all-electric sedan, starts at 229,900 yuan after government subsidies. Li Auto’s ONE SUV sells for 328,000 yuan, while NIO’s ES6 SUV has a starting price of 346,600 yuan. Prices are several notches higher for foreign brands, with the Mercedes-Benz EQC at 499,800 yuan, while the BMW iX3 retails for 469,900 yuan. Local media reported that some drivers who had previously ordered cars from Tesla’s competitors, NIO, Xpeng and Li Auto, have reneged on their contracts and were looking to buy the Model Y. Tesla’s Model 3 sedan, its first mass-produced model in Shanghai, is the runaway leader in the car segment. premium electric vehicles from mainland China. It took Tesla just 12 months to launch the Shanghai-made Model 3 after record building speed from its first offshore factory. In January 2020, Tesla delivered the first batch of locally built Model 3 cars to buyers in mainland China. The eight-fold increase in the California-based automaker’s share price in 2020 propelled it to become the world’s eighth-largest company by value, larger than the combined capitalization of Toyota Motor, Volkswagen, Ford, General Motors and Fiat-Chrysler. Tesla and Chinese technology media and content provider PingWest had been locked in a war of words over the US automaker’s plant in China. PingWest published an article, citing unidentified employees and suppliers, that described Tesla’s Gigafactory 3 in Shanghai as a sweat factory, a claim that Tesla challenged and threatened to sue. More from South China Morning Post: * Tesla begins selling Shanghai-made Model Y electric SUVs in surprise launch as rivalry increases in EV market * Tesla’s reputation polished by JD Power survey after report calls into question The quality of the Model 3s made in Shanghai * Tesla to open an integrated customer experience center in Zhuhai, makes the city its base in the Greater Bay Area * Tesla will export Model 3 vehicles made in China to European countries such as Germany and France * Tesla recalls 30,000 US-made Model S and X vehicles in China as local competitors reduce market share article Shanghai-made Tesla Model Y is well received when Chinese buyers rush to order competitively priced SUVs first appeared on South China Morning Post For the latest South China Morning news Post, download our mobile app. Copyright 2021.
