Xiaomi has begun deliveries of its new-generation SU7 electric sedan while announcing partnerships with three domestic racing events, underscoring its strategy to position the model around performance and driving dynamics.
The company live-streamed the handover of the first batch of vehicles on Monday, following strong initial demand. The upgraded Xiaomi SU7 secured more than 15,000 locked-in orders within 34 minutes of its launch on March 19, according to the company. To shorten delivery times, Xiaomi prepared ready-to-ship inventory in advance, allowing deliveries within one to five weeks after orders are confirmed.
“Over the past two years, owners have had major complaints about our delivery speed. This time, we started production preparations two months in advance,” said Lei Jun, founder, chairman and chief executive of Xiaomi.
The new-generation SU7 starts at 219,900 yuan ($31,810), representing a modest increase of 4,000 yuan compared with the previous version. The price remains below that of the Tesla Model 3. Lei said the updated model includes more than 100 hardware and software upgrades, raising material costs by around 20,000 yuan, though the company opted for only a limited price increase to maintain affordability.
The pricing strategy has raised concerns among investors about potential pressure on margins. Xiaomi’s shares fell 8.59% in Hong Kong following the launch and declined further in early trading.
Alongside deliveries, Xiaomi is expanding its presence in motorsport through title sponsorship agreements with the China Touring Car Championship, China GT Championship and China Endurance Championship. The company said its SU7 Ultra and YU7 sport utility vehicle will serve as official safety and medical cars at these events.
Lei said racetrack testing plays a key role in improving vehicle performance and safety, as Xiaomi aims to embed high-performance engineering into its development process.
The move builds on Xiaomi’s earlier involvement in international motorsport. In May 2025, the company became a premium partner of the Nürburgring, where the mass-produced SU7 Ultra recorded a lap time of 7 minutes and 4.957 seconds, setting a benchmark for production electric vehicles at the circuit.
