On May 29, 2025, Xiaomi introduced its latest electric vehicle (EV), the YU7 SUV, across 13 showrooms in Beijing, marking a strategic move to challenge Tesla’s dominance in China’s EV sector. This launch follows the success of Xiaomi’s SU7 sedan, which has consistently outperformed Tesla’s Model 3 in monthly sales since December 2024.
Key Highlights:
- Product Launch and Market Positioning: The YU7 is Xiaomi’s second EV model and its first SUV, designed to rival Tesla’s Model Y. Analysts view it as a serious contender, especially given Xiaomi’s competitive pricing and integration with its ecosystem of smart devices. Official pricing will be announced in July, with estimates ranging from 230,000 to 330,000 yuan ($31,989–$45,898).
- Consumer Reception: Early showroom visitors expressed interest in the YU7’s design and its seamless connectivity with Xiaomi’s smart home products, highlighting the brand’s understanding of local consumer preferences.
- Challenges and Controversies: Despite its rising prominence, Xiaomi faces challenges due to a decline in new EV orders and ongoing investigations into a fatal SU7 crash involving driving-assistance features. Additionally, the company has faced scrutiny over misleading marketing claims, for which it has issued an apology.
- Technical Specifications: The YU7 boasts a driving range of up to 835 kilometers per charge, surpassing Tesla’s redesigned Model Y, which offers up to 719 kilometers. It features advanced autonomous driving capabilities, including a roof-mounted LiDAR, multiple cameras, and ultrasonic sensors, all powered by Nvidia’s DRIVE AGX Thor-U chip.
With the YU7, Xiaomi aims to leverage its strong brand recognition and innovative technology to capture a significant share of China’s competitive EV market. The company’s expansion into the SUV segment reflects its broader strategy to diversify its product lineup and challenge established players like Tesla.
For more details, read the full article on Reuters: Xiaomi’s Tesla Y rival YU7 hits showrooms in Beijing.
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