Xiaomi, the Chinese smartphone maker, has announced its latest electric vehicle, the YU7 SUV, set to hit the market in July. The new model boasts a driving range of up to 835 kilometers per charge, surpassing Tesla’s Model Y, which has a range of up to 719 kilometers. Xiaomi founder and CEO Lei Jun revealed the specifications at a launch event in Beijing on May 22, 2025.
Key Features of Xiaomi’s YU7
The YU7 is Xiaomi’s second foray into the electric vehicle market, following the successful launch of its SU7 model last year. The SU7 has been outselling Tesla’s Model 3 in China since December, with over 258,000 units delivered. However, Xiaomi has faced recent challenges, including a fatal highway crash involving an SU7 in driving-assistance mode and customer complaints about false advertising.
Comparison with Tesla’s Model Y
Lei Jun directly compared the YU7 to Tesla’s Model Y, stating that while the Model Y starts at 263,500 yuan ($36,574), the YU7 is expected to be 60,000-70,000 yuan more expensive. The exact pricing will be revealed in July when the vehicle goes on sale. Xiaomi has not yet started taking pre-orders for the YU7.
Xiaomi’s Expansion into Automotive and Tech
The launch of the YU7 is part of Xiaomi’s broader strategy to expand its presence in both the automotive and technology sectors. The company also announced a new self-developed chip called Xring T1, further cementing its position in the tech industry. Xiaomi’s Xring O1 mobile chip, announced earlier this month, has been touted to match Apple’s best processor, the A18, in terms of performance.
As Xiaomi ventures into new markets and products, the company faces the challenge of overcoming recent setbacks while competing with established players like Tesla in the electric vehicle market.
