Xiaomi’s New Electric SUV YU7 Challenges Tesla Model Y in Chinese Market
Xiaomi has officially unveiled its new electric SUV, YU7, with plans to start sales in July 2025. According to a Deutsche Bank forecast cited by CNEVPost, Xiaomi aims to deliver around 100,000 units of the YU7 by 2025. When combined with the planned 280,000 deliveries of the SU7 sedan, Xiaomi’s total electric vehicle sales for 2025 could reach 380,000 units, exceeding the company’s initial target of 350,000 units announced by CEO Lei Jun in March.
The YU7 will be available in three trim levels, with the base version offering significant advantages. It boasts a range of 835 km thanks to a 96.3 kWh battery, surpassing the Tesla Model Y RWD’s range of 593 km on a single charge. The YU7 is larger than its competitor, measuring almost 5 meters in length and providing a more spacious interior. Despite its greater weight, the base version of the YU7 accelerates to 100 km/h in 5.88 seconds, matching the performance of the Tesla Model Y.
A key feature of the YU7 is its support for 800-volt architecture, allowing for an additional 620 km of range in just 15 minutes. Lei Jun stated that the YU7 was created to compete directly with the Tesla Model Y, claiming that his company’s vehicle is “much better.” As Xiaomi ramps up production, with its Beijing factory already operating in two shifts and a second phase of the plant expected to be completed by June 2025, competition in China’s electric vehicle market is set to intensify further in 2026.
However, Xiaomi is currently facing challenges. Sales of Xiaomi’s electric vehicles have fallen due to an accident involving three fatalities and a scandal surrounding the SU7 Ultra model. Over 300 customers have requested to cancel their orders due to misleading advertising about the hood design, which featured fake air ducts claimed to improve aerodynamics.
