On Monday, the South China Morning Post reported that in an effort to compete with Tesla and its Shanghai-made Model Y SUV, Chinese electric vehicle maker BYD has launched a sport utility vehicle model of its own.

Unveiled at the Guangzhou Auto Show on Friday, the new SUV will be folded in with BYD’s premium Sea Lion brand, and named Sea Lion 07. The report said the completely electric SUV would be priced from 200,000 yuan ($27,879) to 260,000 yuan ($36,270). It will feature BYD’s proprietary in-house-developed DiSus body control system which is designed to prevent vehicle rollovers during high-speed cornering.

According to analysts, the new SUV is the latest effort by the Chinese automaker to take on Tesla, which is currently the leader of the premium EV sector in China. Competition between the two automakers is predicted to intensify as a result.

In an interview with the South China Morning Post, Chen Jinzhu, chief executive of the consultancy Shanghai Mingliang Auto Service, said, “It will become a tit-for-tat race when BYD builds vehicles similar to Tesla’s Model 3 and Model Y It will be a stern challenge for Tesla because BYD now enjoys a cost advantage over its US rival.”

Backed by Berkshire Hathaway, BYD displaced Tesla last year as the world’s largest electric vehicle maker. However its lineup of electric and plug-in hybrid models is designed to primarily target the low- and middle-income earners in mainland China who are capable of affording its prices, which range from 100,000 yuan ($13,950) to 150,000 yuan ($20,925). By contrast, Tesla’s Model Y, which is assembled at the automaker’s Gigafactory in Shanghai, starts at a price of 266,400 yuan ($37,160).

BYD introduced a new super-luxury model in April. Called the Yangwang U8, the premium model has a starting price of 1.1 million yuan ($153,400) following an unofficial launch in mid-September, BYD has already amassed 30,000 orders for the vehicle.