- Friday, June 27, 2025
Xiaomi’s new YU7 electric SUV has shattered expectations with 289,000 orders in one hour, intensifying pressure on Tesla in China’s booming EV market as competition and consumer choice continue to accelerate.
By: Vibhuti Pathak
Xiaomi’s new YU7 electric SUV has made a dramatic entrance into the Chinese automotive market, registering an extraordinary 289,000 orders within its first hour on sale. This figure is nearly three times higher than the initial orders for Xiaomi’s debut electric sedan, the SU7, launched in March last year, and far exceeds market expectations of around 100,000 orders.
The surge in demand sent Xiaomi’s shares soaring to a record high, highlighting the company’s rapid ascent in the electric vehicle (EV) sector.
Undercutting Tesla with Competitive Pricing
The YU7 is strategically priced to challenge Tesla’s dominance in China’s EV market. The base Standard variant starts at 253,500 yuan (approximately $35,360), which is slightly below the price of Tesla’s Model Y. Despite the lower price, analysts note that the YU7 offers superior specifications and performance, making it a compelling alternative for consumers.
The Pro and Max variants are priced at 279,900 yuan and 329,900 yuan, respectively, offering all-wheel drive and high-performance features.
Advanced Features and Performance
The YU7 is available in three trims—Standard, Pro, and Max. The Standard variant features rear-wheel drive and boasts an impressive range of 835 km (CLTC), while the Pro and Max variants offer all-wheel drive with ranges of 770 km and 760 km, respectively.
Performance highlights include a top-tier Max variant that delivers 690 horsepower and accelerates from 0 to 100 km/h in just 3.23 seconds. The SUV is equipped with Xiaomi’s HyperEngine V6s Plus motor technology, an 800V battery system, and advanced driver-assist features powered by NVIDIA’s DRIVE AGX Thor platform.
Market Impact and Tesla’s Response
The overwhelming response to the YU7 has intensified competition in China’s EV market, particularly for Tesla. Analysts predict that Tesla’s Model Y, currently China’s best-selling SUV, could lose significant market share as Xiaomi’s new SUV gains traction. Citi analysts suggest that Tesla may need to cut prices further, offer its Full Self-Driving software for free, or provide additional financing incentives to remain competitive.
Tesla’s share of the Chinese EV market has already declined from 15 per cent in 2020 to 7.6 per cent in early 2025, reflecting growing pressure from domestic rivals like Xiaomi.
Xiaomi’s Stock Performance and Industry Standing
The launch of the YU7 has propelled Xiaomi’s shares up by more than 70% this year, valuing the company at nearly $200 billion and making it the best-performing large-cap stock in Asia Pacific. The strong market response underscores Xiaomi’s successful transition from consumer electronics to high-performance electric vehicles, positioning the company as a formidable player in China’s fast-evolving automotive landscape.
Xiaomi’s YU7 electric SUV has set a new benchmark for initial EV sales in China, challenging established players like Tesla with its blend of competitive pricing, advanced technology, and robust performance.
As the EV market becomes increasingly crowded, consumers are set to benefit from greater choice and innovation, while industry leaders must adapt quickly to maintain their edge.
