Tesla plans to produce a six-seat variant of its Model Y in China by late 2025 to boost its appeal in the competitive EV market. Learn about the expansion plans and the pressure from domestic rivals.
Bollywood Fever: Tesla is set to introduce a six-seat variant of its Model Y in China by late 2025, according to sources familiar with the matter.
The move comes as the U.S. automaker seeks to enhance the appeal of its best-selling yet aging electric vehicle (EV) amid growing competition in the Chinese market.
Tesla has reportedly instructed suppliers to prepare for a significant increase in Model Y production at its Shanghai factory, with expectations for a double-digit rise in output.
However, the company has not made these plans public, and Tesla declined to comment when approached.
The specifics of how Tesla will ramp up production at the Shanghai plant remain unclear. The factory is currently awaiting approval for expansion on 70 hectares (172 acres) of former farmland.
Despite this, the plant has already seen a 6% year-on-year increase in domestic and overseas deliveries of the Model 3 during the first half of the year, thanks in part to the launch of a refreshed version in 2023.
The Model Y, first released in 2020, is undergoing a revamp under a project known as “Juniper,” as previously reported by Reuters.
While the updated five-seater version was initially expected to launch this year, it has been pushed to early 2025, according to sources.
The decision to add a six-seater variant reflects the competitive pressure Tesla faces in China from domestic EV manufacturers.
This year alone, at least four competitors to the Model Y have been introduced, including the Nio Onvo L60 and Zeekr 7X, which offer roomier interiors at more competitive prices.
Despite the competition, the Model Y remains the best-selling car in China across all power types, with 207,800 units sold between January and June. However, the BYD Seagull sedan is quickly gaining ground.
Tesla expects its overall sales in China to increase in the third quarter, driven by strong demand in smaller cities.
This comes even after the company reduced its sales force as part of global layoffs in May, which may point to improved profitability.
Additionally, sales could receive a further boost with the planned introduction of Tesla’s Full Self-Driving (FSD) feature in China by the end of the year.
In the U.S., Tesla already offers a seven-seater Model Y, but the cramped third row has made it less popular in China. “It’s not even large enough for a large-sized dog,” one source commented, highlighting the challenge of adapting the vehicle’s design to meet the preferences of Chinese consumers.
As Tesla continues to navigate the highly competitive Chinese market, the introduction of the six-seat Model Y could play a crucial role in maintaining its dominance in the EV sector.
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