Tesla Motors launched the new, lower-priced standard version of its best-selling Model Y SUV in Europe on Friday, aiming to reinvigorate demand in a market that has weakened sharply over the past year.

The new Model Y Standard, unveiled earlier this week, marks Tesla's latest push to boost demand in the region, where sales of its electric vehicles have been slowing and competition is intensifying.

In Germany, the variant is priced at 39,990 euros ($46,304), about 5,000 euros lower than the cheapest Model Y versions in Europe prior to the launch.

However, the more affordable model is set to face a crowded field of European and Chinese brands offering smaller EVs below 35,000 euros.

Tesla also introduced a Standard variant of the Model 3 in the U.S. earlier this week but the variant was not listed on websites for most European markets.

To achieve lower prices, Tesla has pared back some features in the new versions. The Model Y Standard comes with reduced interior lighting, fewer speakers, fabric seat covers and does not include Autosteer as standard.

"It is a very competitive price. It is a car with very good tech and good size for that price, and they will compete well in the market with others there," said Christina Bu, secretary general of the Norwegian EV Association.

The company has priced the new version of the Model Y SUV at 421,996 Norwegian crowns ($41,714) in Norway, according to Tesla's website.

The vehicle costs 499,990 Swedish crowns ($52,521) in Sweden. Tesla said the model would be available in Germany, Norway and Sweden in November or December.

The move comes as Tesla grapples with softening demand across Europe. New registrations have fallen sharply this year in several markets despite earlier refreshes to the Model Y lineup.

Norway, however, remains an exception, where deliveries of the revamped Model Y surged earlier this year following strong local incentives and improved supply.

Meanwhile, the lower-cost version of the Model Y was not available in Ireland and the UK, where cars are right-hand drive, according to Tesla's website.