Zeekr, a Chinese electric vehicle manufacturer, aims to enter international markets with its SUV, which is competitively priced compared to Tesla's Model Y.

• The Zeekr 7X, an electric midsize SUV, will be launched by Zeekr in China on Sept. 20, priced at $33,700, to compete with Tesla's Model Y.
• The Zeekr 7X has two battery options that provide a range of 605 to 780 kilometers, and deliveries will start in China by the end of September, with global markets coming online within a year, according to the company.
• Amidst fierce competition in China's electric vehicle market, other brands such as Xpeng and Nio have introduced lower-cost models.

An electric vehicle company announced it will launch its first SUV in China next month, offering it at a lower price than Tesla's Model Y in the country by over $1,400.

The Chinese EV manufacturer's first midsize electric SUV, the Zeekr 7X, will be launched on Sept. 20 and costs 239,900 yuan ($33, 829).

The latest Chinese EV to compete with Tesla's Model Y is Zeekr's 7X, which has also faced competition from Xpeng and Nio. Zeekr plans to launch the 7X globally by the end of this year, targeting global markets but not specifying the regions.

The Zeekr 7X SUV has two battery options that enable drivers to travel between 605 kilometers and 780 kilometers (about 376 to 485 miles) on a single charge. Zeekr's engineers developed the lithium-ion phosphate batteries, which take only 10.5 minutes to charge by 75%.

In the past, Zeekr has claimed that its newest batteries provide the quickest charging speed globally, surpassing that of Tesla's.

The company plans to compete with Model Y by introducing the new 7X, which can reach 100 km/h in 3.8 seconds.

In China, Tesla's Model Y, priced at 249,900 yuan ($35, 240), is one of the top-selling electric vehicles, according to data from user Tslachan on X.

The electric vehicle market in China is experiencing a fierce price competition. This week, released its mass-market Mona M03 with models starting at less than US$17,000. In May, Chinese brand Onvo launched a lower-cost brand, with cars priced $4,000 cheaper than Tesla's Model Y.

In March 2024, Xiaomi launched its SU7 at 215,900 yuan ($30,408) to undercut Tesla's Model 3 pricing of 245,900 yuan ($34,676). Xiaomi CEO Lei Jun admitted that the prices meant that each car would be sold at a loss.

With the release of new, cheaper EV models by Chinese automakers, Tesla's competitive edge in the American market is becoming increasingly difficult to maintain. According to a 2024 U.S. Initial Quality Study released in June, Tesla is losing its lead even to legacy automakers due to quality concerns.

While Tesla has faced lower tariffs on its imports from China, Chinese automakers have been hit with a 36% tariff.

Tesla's China Model Y prices have not changed for nine consecutive weeks.

In July, Zeekr experienced a 30% year-on-year increase in car sales, selling 15,655 cars, while Tesla achieved a 47% year-on-year rise in car sales, selling 46,227 cars.

The 7X right-hand drive version will be launched in Hong Kong next year by Zeekr, who entered the city last month.

—CNBC's Evelyn Cheng contributed to this report.