BEIJING — Renowned for its smartphones, Xiaomi has recently ventured into the electric vehicle market. Now, the company is poised to challenge Tesla’s top-selling model in China.
In less than a year since its first electric car launch, Xiaomi introduced the YU7 SUV, boasting a driving range of at least 760 kilometers (472 miles) on a single charge.
This range surpasses the 719 kilometers advertised for Tesla’s long-range Model Y, appealing to customers concerned about battery charging frequency.
Citi analyst Jeff Chung noted in a Sunday report, “We anticipate the YU7 will notably impact Tesla’s Model Y market share in China.”
Citi estimates the YU7 will be priced between 250,000 yuan to 320,000 yuan ($34,700 to $44,420) and forecasts monthly sales of approximately 30,000 units, predicting total annual sales could reach between 300,000 to 360,000 units.
This pricing positions the YU7 against Tesla’s Model Y, which starts at 263,500 yuan in China. Xiaomi is set to officially announce the YU7’s pricing during its July launch event.
The official price for the YU7 will be revealed during its launch event in July.
Tesla’s Model Y ranked as the second best-selling new energy vehicle in China during the first half of the year, data from Autohome indicates. BYD’s budget-friendly Seagull claimed the top spot, while the Wuling Hongguang Mini secured third place.
For April, Geely’s Geome Xingyuan topped the new energy vehicle sales charts, followed closely by BYD’s Seagull and the Wuling Hongguang Mini. According to Autohome, Xiaomi’s SU7 sedan placed fourth, with three BYD models following closely behind, while Tesla’s Model Y held the eighth spot.
Potential for Higher Sales than Xiaomi’s First Car?
The YU7 is branded as a “luxury SUV,” and analysts predict its sales could surpass that of the SU7, as noted by Elinor Leung, managing director at CLSA.
Last year, Xiaomi unveiled its first electric vehicle, the SU7 sedan, which was priced $4,000 less than Tesla’s Model 3. Following this, Tesla adjusted the Model 3’s price to 235,500 yuan as of May 26, although it remains more expensive than the SU7, priced at 215,900 yuan.
Xiaomi reported deliveries of over 28,000 units of the SU7 in April, a slight decrease from the record high of more than 29,000 units in March. This dip followed a tragic accident involving the SU7 in China, which resulted in three fatalities, prompting the Chinese authorities to enforce stricter advertising regulations around driver-assist technologies.
The reveal of the YU7 occurred at the conclusion of an event where Xiaomi showcased a new premium phone featuring a chip that the company claims outperforms Apple’s in various benchmarks. Finance Newso has not independently confirmed these assertions.
In the competitive electric vehicle landscape, the company Xpeng is set to launch the Max version of its widely favored Mona M03 on Wednesday, which will feature enhanced driver-assist functionalities. The company has previously announced that deliveries for the Max version would commence post-Lunar New Year in February.
