BEIJING — Xiaomi, the prominent Chinese smartphone manufacturer, is directing its competitive energy towards Tesla with the launch of its new electric SUV, named the YU7.
CEO Lei Jun announced that the luxury YU7 SUV will commence at a price of 253,500 yuan ($35,322), making it 10,000 yuan more affordable than the Tesla Model Y, which is priced at 263,500 yuan in China.
Before the official unveiling of its price, a report from Citi had speculated that the YU7 would fall between 250,000 yuan to 320,000 yuan ($34,800 to $44,590), anticipating monthly sales of approximately 30,000 units. Citi projects that annual sales could reach between 300,000 and 360,000 units as demand increases.
In comparison, Xiaomi’s SU7 sedan, which debuted last year, was also priced lower than Tesla’s Model 3.
During the announcement, Lei emphasized the YU7’s superior performance in various aspects compared to Tesla’s Model Y, although he acknowledged that it falls short in driver assistance features. The YU7 includes driver-assist technology, with the most advanced version utilizing Nvidia’s Thor chip. Pre-sales commenced at 10 p.m. on Thursday, with anticipated delivery times ranging from one to five weeks.
Within just three minutes of initiating pre-sales, Xiaomi reported over 200,000 orders for the YU7.
Vehicle Details
Xiaomi had initially planned for the YU7 to launch in July, but has accelerated its release amid intensifying competition in the electric vehicle sector.
Unveiled in late May, the YU7 enters the market less than a year after Xiaomi’s debut electric vehicle and boasts a driving range of at least 760 kilometers (472 miles) on a single charge, surpassing Tesla’s claimed 719 kilometers for their extended-range Model Y. This feature is particularly appealing to consumers concerned about the frequency of battery recharges.
Although Xiaomi hasn’t prominently featured its artificial intelligence capabilities, the launch event highlighted several AI-driven functions, including the ability for drivers to switch songs via hand gestures and an app feature that specifies the vehicle’s parking location.
Additionally, the YU7 is compatible with Apple Car Play and Apple Music, according to Lei.
New AI Glasses
In addition to the YU7, Xiaomi introduced several other products on Thursday, including highly anticipated artificial intelligence-connected glasses.
The AI glasses, designed to compete with Meta’s Ray-Ban smart glasses, include features such as adjustable lens tinting and QR code scanning for mobile payments, similar to functionalities in China’s smartphone applications. The glasses also offer capabilities to capture photos and videos, along with an AI feature for identifying flora or translating text.
The starting price for Xiaomi’s AI glasses is set at 1,999 yuan ($279), although a company spokesperson indicated there are no current plans for international sales, as Meta’s devices are also not officially available in China.
