Recently, Tesla (TSLA, Financial) announced a refreshed Model Y in China that comes with light bars across its front and rear, heated and ventilated seats, a second-row touchscreen, and an increased range of 719 km per charge. Delivery of the new Model Y, priced at 263,500 yuan ($35,900), is expected to start in March after receiving regulatory approval. This launch comes as the company looks to claw back market share it has lost to local rivals BYD and Xiaomi, which have entered competitive models like the SU7. Last year, Tesla’s market share in China fell to 10.4%.

Like its Cybertruck, the refreshed Model Y borrows its cut-through light cluster design both upfront and behind, something common among Chinese EV makers here locally. It measures 4,797 mm in length, 1,920 mm in width, and 1,640 mm in height, with a wheelbase of 2,890 mm. It has seen better interior quality and reduced noise levels for a quieter ride.

Tesla’s move comes as it faces growing competition from domestic brands, which are eroding market share from foreign brands such as General Motors and Volkswagen in China’s electric vehicle market. Tesla sold 36.7 per cent of its 2024 sales in China, but its market share for EVs has slightly slipped.

The new Model Y is expected to assist Tesla in maintaining its aggressive edge in the Chinese market with new features and a style tailored to local customers. Later this year, Tesla will add a six-seat variant of the Model Y in the region.

This article first appeared on GuruFocus.