Sep 03, 2024 10:15 AM IST
Tesla’s plan to increase Model Y production at its Shanghai factory remains unclear as it awaits approval to expand the facility.
Tesla plans to produce a six-seat variant of its Model Y car in China from late 2025, two people with direct knowledge of the matter said told news agency Reuters. This comes as the US automaker strives to increase the appeal of its best-selling electric vehicle (EV). One of the unnamed sources said as per the report that Tesla has asked suppliers to prepare accordingly for a double-digit increase of Model Y output at its Shanghai factory.
However, it remained unclear how Tesla would raise production at the plant, which is awaiting approval to expand on 70 hectares (172 acres) of former farmland. It has already seen a 6% on-year increase in domestic and overseas Model 3 deliveries during January-June boosted by last year’s launch of a renewed version.
Tesla released Model Y in 2020 and has been revamping it under a project dubbed “Juniper” which will seat five and will launch in early 2025 rather than this year as initially planned, the report claimed. The addition of a six-seater variant underscores pressure in China from domestic rivals while in the US Tesla is prioritising self-driving technology and robotaxi development.
Those rivals have unveiled at least four Model Y competitors this year including the Onvo L60 from Nio and 7X from Zeekr. The Model Y crossover is the best-selling car in China among all power types with January-June sales of 207,800 vehicles.
Tesla expects its overall China sales to increase in the third quarter due to strong growth in smaller cities, even though it shrunk its sales force as part of global layoffs in May. Tesla sells a seven-seater Model Y in the US but a cramped third row would make it unpopular in China, the report claimed citing a person in the know as saying, “It’s not even large enough for a large-sized dog.”