Electrical car firm Zeekr introduced Friday that it will launch its first SUV in China subsequent month, undercutting Tesla’s Mannequin Y pricing within the nation by over $1,400.

The Zeekr 7X, priced at 239,900 yuan ($33, 829), is the Chinese language EV maker’s first midsize electrical SUV and might be launched on Sept. 20.

It is the newest Chinese language EV to tackle Tesla’s Mannequin Y, which has additionally been challenged by Xpeng and Nio. Zeekr plans to ship the 7X globally by the tip of this yr. It stated the launch was focused at international markets however didn’t specify the areas.

The five-seater Zeekr 7X SUV comes with two battery choices that permit customers to drive between 605 kilometers and 780 kilometers (about 376 to 485 miles) on a single cost. Developed by Zeekr’s engineers, the lithium-ion phosphate batteries take 10.5 minutes to cost by 75%, the corporate stated.

Zeekr has stated prior to now that its newest batteries supply the quickest cost on the planet, beating that of Tesla’s.

The corporate stated it goals to tackle Tesla’s Mannequin Y, additionally a five-seater, with the brand new 7X, which may speed up from 0 to 100 kilometers per hour in simply 3.8 seconds.

Tesla’s Mannequin Y, which begins at 249,900 yuan ($35, 240), is likely one of the best-selling electrical automobiles in China, in accordance with information printed by person Tslachan on X.

China’s electrical car market is within the throes of an intense value warfare. Simply this week, Xpeng launched its mass-market Mona M03 with fashions that begin at lower than US$17,000. In Could, Chinese language model Nio launched a lower-cost model, Onvo, with vehicles priced $4,000 cheaper than Tesla’s Mannequin Y.

Earlier in March 2024, Xiaomi launched its SU7 at 215,900 yuan ($30,408) to beat Tesla’s Mannequin 3 pricing at 245,900 yuan ($34,676). Xiaomi CEO Lei Jun acknowledged on the time that the costs meant that every automotive could be offered at a loss.

As Chinese language EV makers proceed releasing new fashions at a less expensive value, it appears more and more more durable for the American-automaker to keep up its aggressive edge. A 2024 U.S. Preliminary High quality Examine launched in June this yr confirmed that Tesla was shedding its lead even over legacy automakers as a consequence of high quality issues.

Alternatively, Tesla has gotten off comparatively simpler for EU-imposed tariffs on its China-imports at 9% in comparison with Chinese language automakers, particularly towards the hefty 36% imposed on SAIC.

Tesla’s China Mannequin Y costs haven’t modified for 9 consecutive weeks.

In July, Zeekr offered 15,655 vehicles, a 30% year-on-year progress, whereas Tesla offered 46, 227 vehicles, an year-on-year rise of 47%.

Zeekr additionally entered Hong Kong final month, and the corporate plans to launch a right-hand drive model of the 7X there subsequent yr.

—CNBC’s Evelyn Cheng contributed to this report.