Xiaomi Launches YU7 SUV to Challenge Tesla’s Model Y in China’s EV Market
- tech360.tv
- May 25
- 2 min read
Xiaomi has unveiled its new YU7 electric SUV, aiming to dethrone Tesla’s Model Y as the top-selling SUV in mainland China.
The YU7, which features a preliminary self-driving system, a large multimedia screen, and a high-performance battery, will go on sale in July. Pricing has not yet been announced, but Xiaomi CEO Lei Jun said it would be worth at least CNY 300,000 (USD 41,620), dismissing online speculation of a CNY 199,000 (USD 27,621) price tag.
The YU7’s basic edition offers a driving range of 835 km, significantly higher than the upgraded Model Y’s 593 km. Tesla’s revamped Model Y starts at CNY 263,500 (USD 36,570).
The launch follows the success of Xiaomi’s first electric vehicle, the SU7 sedan, which has outsold Tesla’s Model 3 in China since December. In April, Xiaomi delivered more than 28,000 SU7s, while Tesla’s Model 3 sales dropped 66.3% from March to 8,747 units.
Xiaomi expressed confidence in January that the YU7 would outperform the Model Y once orders began. The company delayed the YU7’s debut until May, despite expectations it would be revealed at the Shanghai Auto Show in April. Sales executives noted that buyers may face delivery delays due to production shortages.
Tesla has led China’s premium EV segment since 2020, with the Model Y becoming the best-selling SUV, including petrol-powered models, in 2024. Tesla delivered over 480,000 Model Ys in China last year, a 5.2% increase from 2023.
However, Tesla’s dominance is being challenged by local rivals such as BYD and Xiaomi. The Shanghai Gigafactory’s first-quarter deliveries fell 22% year-on-year to 172,754 units, the lowest in three years.
Despite numerous electric SUV launches from Chinese brands like Zeekr and Nio, none have significantly threatened the Model Y’s market position—until now.
Xiaomi’s YU7 SUV will launch in July with a range of 835 km
Pricing is expected to start at around CNY 300,000 (USD 41,620)
The YU7 aims to rival Tesla’s Model Y, which has a 593 km range
Source: SCMP
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