Tesla upgraded the self-driving {hardware} on the Mannequin Y automotive it sells in China, Elon Musk’s automaker mentioned on WeChat on Thursday, because it seems to spice up gross sales and fend off rising competitors from home gamers.

The Tesla Mannequin Y will include {Hardware} 4.0 (HW 4.0) freed from cost when a buyer purchases the automotive. HW 4.0 is a set of cameras, sensors and on-board laptop designed to facilitate Tesla’s experimental driver-assistance software program, which is marketed as Full Self-Driving Beta or FSD Beta.

Tesla has not formally launched FSD Beta in China, although state media in November reported the electrical carmaker is within the strategy of making an attempt to launch it, citing firm insiders.

The U.S. EV maker additionally launched new purple, grey and silver colours for the Mannequin Y in China.

HW 4.0 is Tesla’s most superior set of {hardware} designed for autonomous options. It’s touted to have extra highly effective processing energy and higher cameras which can be vital for the automotive to grasp its atmosphere so it would not drive into folks or different automobiles and objects.

Tesla has introduced HW 4.0 to the Mannequin S and Mannequin X vehicles in some markets.

The transfer from Tesla to improve the Mannequin Y comes within the absence of latest mass-market vehicles from the automaker because it faces rising competitors in China, one in every of its most vital markets.

Within the fourth quarter, Warren Buffett-backed Chinese language auto large BYD bought extra electrical vehicles than Tesla.

Tesla can be going through competitors from automakers akin to Nio and Xpeng.

Chinese language electrical automobile corporations have seemed to ramp up competitors by specializing in know-how in areas akin to self-driving options and higher batteries.

Tesla’s newest {hardware} improve is a approach for it to reply to that.

Its enterprise is going through stress because it minimize costs final 12 months internationally to stoke demand, which has weighed on its margins. Tesla warned final week that automobile quantity progress in 2024 “could also be notably decrease” than final 12 months.