Chinese tech giant Xiaomi (1810.HK) has intensified its push into the electric vehicle market by launching its second EV, the YU7 SUV, with a starting price of 253,500 yuan ($35,364) — undercutting Tesla’s Model Y by almost 4% in China.
Xiaomi unveiled pricing for the YU7 on Thursday, with higher-end variants YU7 Pro and YU7 Max priced at 279,900 yuan and 329,900 yuan, respectively. The Model Y, which was China’s top-selling SUV in May, currently starts at 263,500 yuan. Xiaomi began taking orders at 10 p.m. local time, and reported more than 200,000 bookings within the first three minutes.
“The YU7 will serve as an early test of whether Xiaomi can broaden its appeal beyond early adopters and tech enthusiasts to become a serious player in the mass-market EV segment,” said Rosalie Chen, senior analyst at consultancy Third Bridge.
With a maximum driving range of 835 km per charge, the YU7 surpasses the 719 km range of Tesla’s updated Model Y. The new SUV follows the successful launch of the SU7 electric sedan, which has outpaced Tesla’s Model 3 in Chinese monthly sales since December. Xiaomi raised its EV delivery target for 2025 from 300,000 to 350,000 units and has recently acquired new land in Beijing to support future smart EV manufacturing.
The company also announced partnerships with BYD, GAC Toyota, and Zhengzhou Nissan to help integrate its vehicles into a broader smart ecosystem connecting people, homes, and mobility. CEO Lei Jun expressed confidence in the profitability of the EV business by the second half of the year.
