TESLA is preparing to launch a six-seat version of the Model Y in China after its sales in the world’s largest auto market declined in the first half of this year due to growing competition from domestic manufacturers.

The new Model Y L, an electric sport utility vehicle, is already rolling off the production line at the company’s Gigafactory in Shanghai and will enter the market this fall, the U.S. carmaker’s China arm announced on Weibo on Wednesday. The long-anticipated variant promises to bring greater flexibility to families wanting extra seating.

The Model Y L is about 4.98 meters long, 1.92 meters wide, and 1.67 meters tall, according to information listed on the website of China’s Ministry of Industry and Information Technology (MIIT). The car will use LG Energy Solution’s batteries.

Compared with the standard version of the Model Y, the new car is 179 millimeters longer and 44 mm taller, while the width remains unchanged.

The Model Y L is expected to become the flagship model produced at Tesla’s Gigafactory, Chinese reports noted, citing industry insiders. Its price will likely be between that of the Model Y and Model X, with estimates at around 400,000 yuan (US$55,730).

The starting price of the Model Y in China is 263,500 yuan and that of the Model X is 738,700 yuan.

Since launching in 2019, the Model Y has been Tesla’s best-selling car, selling 1.1 million units last year to rank second in single-model sales, only behind Toyota Motor’s RAV4. Its China sales topped 480,000 units, maintaining its spot as the best-selling auto.

In January, Tesla launched a refreshed Model Y, but faced a lukewarm reception in the Chinese market. The carmaker’s sales in China dropped 5.4% to 263,400 units in the six months ended June 30 from a year earlier, including 171,000 Model Ys, which ranked it as only the third best-selling model, according to the China Passenger Car Association (CPCA).

Chinese consumers generally prefer larger vehicles to meet family travel needs, which was likely Tesla’s primary consideration for the Model Y L. However, competition in the local large SUV market is already quite fierce, with Li Auto and Seres Auto’s Aito brand planning to launch new six-seat SUV models in the second half of the year.(SD-Agencies)