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A 6-seat Model Y? Tesla to revamp SUV for China market under project ‘Juniper’

A revamped Model Y is expected to take on Li Auto’s L8 and L9 large-size SUVs, which have won over thousands of rich families in mainland China.

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Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany in March 2022. Photo: Reuters
Daniel Renin Shanghai
Tesla is going on the offensive in mainland China after losing market share to rivals such as Li Auto and Nio, with plans to fine-tune its product mix, expand its customer base and regain its market dominance.
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The US electric vehicle (EV) maker will assemble a six-seat Model Y variant at its Shanghai Gigafactory next year to take a shot at middle-income households in the world’s largest automotive market, according to two people with knowledge of the company’s plans.

The plan to revamp Model Y is part of a project code-named “Juniper” launched last year, and comes after the leader in China’s premium EV segment lost more than half of its market share amid stiff competition and price cuts.

“Tesla has to step out of its comfort zone now that several carmakers have introduced models to challenge its bestselling Model Y,” said Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto. “This is a market with picky consumers who always want to buy the best products at the lowest prices.”

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The made-in-Shanghai Model Y is currently configured with five seats in two rows for the China market, while its refreshed version in North America comes in seven seats, where two seats – described as “barely able to fit a large dog” – are squeezed into the third row.

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A six-seat configuration for the China-only market would balance capacity with spaciousness, putting two seats in each of the three rows and collapsing the middle seat in the second row for easier egress, according to some media reports.

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