Xiaomi's YU7 SUV Challenges Tesla's Model Y in China

Xiaomi, a prominent technology company known for its smartphones, has recently entered the electric vehicle (EV) market and is now targeting Tesla's top-selling Model Y in China. Less than a year after launching its first EV, Xiaomi introduced the YU7 SUV, boasting a single-charge range of at least 760 kilometers (472 miles), surpassing Tesla's long-range Model Y, which claims 719 kilometers. Battery range is a critical factor for consumers concerned about frequent charging.

Citigroup analyst Jeff Chung noted in a recent report, "We anticipate that the YU7 will significantly erode Tesla's Model Y market share in China." The bank predicts the YU7 will be priced between 250,000 and 320,000 yuan (approximately 34,700 to 44,420 USD), with an estimated monthly sales volume of around 30,000 units. If sales pick up, Citigroup forecasts annual sales could reach 300,000 to 360,000 units. This pricing range directly competes with Tesla's Model Y, which starts at 263,500 yuan. Xiaomi plans to announce the final price of the YU7 upon its official launch in July.

According to automotive information platform data, as of the end of April, Tesla's Model Y ranked second in China's new energy vehicle sales, behind BYD's Dolphin, which offers a lower price. The economical Wuling Hongguang Mini ranked third. In April alone, Geely's Geometry Xingyuan topped the new energy vehicle sales chart, followed by BYD's Dolphin and Wuling Hongguang Mini. Xiaomi's SU7 sedan ranked fourth, followed by three BYD models, while Tesla's Model Y slipped to eighth place.

Elinor Leung, head of Asia telecom and internet research at a securities firm, believes the YU7, positioned as a "luxury SUV," could outperform the SU7 in the market. When Xiaomi launched its first EV, the SU7 sedan, last year, it was priced 4,000 USD lower than Tesla's Model 3. Although Tesla later reduced the price of the Model 3 to 235,500 yuan (as of May 26), it remained higher than the SU7's price of 215,900 yuan.