Xiaomi, the Chinese tech giant, is gearing up to rival Tesla by introducing an SUV similar to the Model Y, with production slated to begin as early as 2025, as reported by Bloomberg today. The development of Xiaomi’s SUV reportedly drew inspiration from Tesla’s Model Y, according to a source familiar with the matter.
The idea of an SUV first surfaced in 2021 when Xiaomi’s founder and CEO, Lei Jun, announced that venturing into electric vehicles would be his final major entrepreneurial pursuit. However, the company opted to debut the SU7 sedan first, with production expected to hit around 100,000 units this year.
Production of Xiaomi’s SUV is not expected to commence until at least the end of 2025, coinciding with the completion of the second phase of the assembly plant in Beijing, a source noted. Currently, Xiaomi is prioritizing the production of the SU7 sedan, delivering nearly 10,000 units per month.
In March, Xiaomi officially launched the SU7, offering three trims – standard, Pro, and Max – with starting prices ranging from RMB 215,900 ($29,840) to RMB 299,900. Lei Jun remarked at an investor conference in April that in the traditional auto industry, demand for SUVs and sedans is equal, with sedans being the mainstream demand in the battery electric vehicle (BEV) segment.
Xiaomi’s EV factory, located in Yizhuang, Beijing, has a planned annual capacity of 300,000 units, to be built in two phases. The first phase, completed in June 2023, covers approximately 720,000 square meters with an annual capacity of 150,000 vehicles. Construction for the second phase is expected to begin in 2024 and finish in 2025.
Lei Jun expressed optimism about the future, targeting monthly deliveries of more than 10,000 units of the SU7 by June. Xiaomi’s second model will be an all-electric SUV, while a third model with a lower price tag is also in the works, aimed at the RMB 150,000 class.
According to local media outlet 36kr, Xiaomi’s SUV, set to launch in 2025, will aid Xiaomi EV in expanding its presence in the mainstream market. Despite the positive reception of the SU7, the company’s first vehicle, improvements are expected in the subsequent SUV model, as per a source close to the Xiaomi EV team.
The report also mentioned that Xiaomi is planning to introduce a cost-sensitive model initially priced in the RMB 150,000 class, further diversifying its EV lineup.
