Xiaomi, best known for its smartphones, is now going head-to-head with Tesla in China’s electric vehicle market with the reveal of its second EV—the YU7 SUV.
Unveiled on Thursday, the YU7 is positioned as a direct competitor to Tesla’s Model Y. BYD’s EV is expected to cost between $34,700 and $44,420; it boasts a driving range of 472 miles. Model Y starts at approximately $36,400 in China and offers 447 miles.
Citi analysts forecast robust demand for the Chinese vehicle, projecting monthly sales of around 30,000 units and an annual volume of up to 360,000 SUVs.
Xiaomi is gaining momentum in China
In April’s EV sales rankings, Tesla’s Model Y secured the eighth spot, while Xiaomi’s first EV, the SU7 sedan, was in fourth place.
The SU7, launched last year, sold over 28,000 units in April alone—despite a fatal crash that led to tighter regulations on marketing driver-assist systems in the country.
Tesla’s grip in China is already slipping. The launch of the YU7, positioned as a luxury SUV, could further disrupt the country’s EV market, currently dominated by BYD, Tesla, and Geely.