In an unprecedented display of consumer demand, Xiaomi’s second electric vehicle, the YU7 SUV, garnered over 200,000 orders within just three minutes of its launch on June 26, 2025, in Beijing. This remarkable achievement, announced by Xiaomi on Weibo, has sent shockwaves through the electric vehicle (EV) industry, positioning the YU7 as a formidable competitor to Tesla’s Model Y, China’s best-selling SUV. Priced from 253,500 yuan ($35,360 USD), the YU7 undercuts the Model Y while offering superior range, power, and features, intensifying the price war in China’s cutthroat EV market. This article explores the YU7’s specifications, market impact, and Xiaomi’s ambitious strategy to challenge established players like Tesla and BYD, while addressing the challenges of meeting this overwhelming demand.
A New Milestone for Xiaomi’s EV Ambitions
Xiaomi, a Chinese electronics giant known for smartphones and home appliances, entered the EV market in March 2024 with its SU7 sedan, which quickly outsold Tesla’s Model 3 in China. The YU7, Xiaomi’s first SUV, builds on this success, targeting the mid-to-large SUV segment dominated by Tesla’s Model Y. Launched with a direct comparison to the Model Y, the YU7 has captured the attention of consumers and investors alike, with Xiaomi’s stock surging 8% to a record high of HK$61 on June 27, 2025, valuing the company at HK$1.55 trillion.
The YU7’s launch event, led by CEO Lei Jun, was a bold statement of intent. Lei openly challenged Tesla, praising its efficiency and advanced driver-assistance systems (ADAS) while highlighting the YU7’s superior specifications. Within an hour of opening pre-orders, Xiaomi reported 289,000 orders, far exceeding analyst expectations of around 100,000 units. These orders, backed by a 5,000 yuan ($700 USD) refundable deposit, reflect genuine consumer interest, unlike Tesla’s Cybertruck, which saw inflated reservation numbers due to low-commitment deposits.
Y|GenderU7 Variants and Specifications
The YU7 is available in three trims—Standard, Pro, and Max—each designed to compete directly with corresponding Model Y variants. The Standard trim, priced at 253,500 yuan ($35,360 USD), is a rear-wheel-drive (RWD) model with a single motor delivering 235 kW (315 hp) and 528 Nm of torque. It boasts an impressive 830 km range (CLTC) powered by a 96.3 kWh lithium iron phosphate (LPF) battery, outpacing the Model Y Rear-Wheel Drive’s 593 km range. The 0-100 km/h sprint takes 5.88 seconds, closely matching the Model Y’s 5.9 seconds.
The Pro AWD variant, priced at 279,900 yuan ($39,000 USD), features a dual-motor powertrain with 365 kW (489 hp) and 690 Nm of torque, achieving 0-100 km/h in 4.27 seconds. Its range is slightly lower at around 700 km (CLTC), but it still surpasses the Model Y Long Range’s 719土地 km. The top-spec Max AWD, at 329,900 yuan ($46,000 USD), delivers 508 kW (681 hp) and 866 Nm of torque, sprinting to 100 km/h in just 3.23 seconds and reaching a top speed of 253 km/h, outperforming the Model Y Performance’s 250 km/h.
All YU7 variants utilize an 800V architecture for ultra-fast charging, reducing charging times significantly. The SUV measures 4,999 mm in length, 1,996 mm in width, and 1,600 mm in height, with a 3,000 mm wheelbase, making it slightly larger than the Model Y. High-end features include LiDAR sensors, NVIDIA’s Thor chip for advanced driver-assistance, massaging seats, Apple CarPlay, Apple Music, and interior storage drawers, catering to Chinese consumers’ preference for tech-laden vehicles.
YU7 vs. Model Y Comparison Table
|
Feature |
Xiaomi YU7 Standard |
Xiaomi YU7 Pro |
Xiaomi YU7 Max |
Tesla Model Y RWD |
Tesla Model Y Long Range |
Tesla Model Y Performance |
|---|---|---|---|---|---|---|
|
Price (RMB/USD) |
253,500/$35,360 | 279,900/$39,000 | 329,900/$46,000 | 263,500/$36,700 | 313,500/$43,600 | 354,900/$49,400 |
|
Power (kW/hp) |
235/315 | 365/489 | 508/681 | 220/295 | 331/444 | 357/479 |
|
Torque (Nm) |
528 | 690 | 866 | 420 | 559 | 660 |
|
0-100 km/h (sec) |
5.88 | 4.27 | 3.23 | 5.9 | 4.3 | 3.7 |
|
Top Speed (km/h) |
230 | 240 | 253 | 217 | 217 | 250 |
|
Range (CLTC, km) |
830 | ~700 | ~650 | 593 | 719 | 615 |
|
Battery (kWh) |
96.3 | 96.3 | 96.3 | 60 | 78.4 | 78.4 |
Market Impact and Competitive Landscape
The YU7’s launch intensifies the price war in China’s EV market, where Tesla’s market share has declined from 15% in 2020 to 7.6% in the first five months of 2025. The Model Y, once China’s top-selling SUV, faces growing competition from domestic rivals like BYD’s Sealion 07, Zeekr 7X, Onvo L60, and Xpeng G7. Xiaomi’s aggressive pricing and superior specs are expected to erode Tesla’s market share further, with Citi analysts predicting Tesla may need to cut prices, offer free Full Self-Driving (FSD) software, or introduce a lower-priced Model Y variant to compete.
Xiaomi’s SU7 sedan has already demonstrated its disruptive potential, delivering over 272,000 units from March 2024 to May 2025 and consistently outselling the Model 3 since December 2024. The YU7’s 200,000 orders in three minutes—quadrupling the SU7’s 50,000 pre-orders in 27 minutes—signal even stronger demand. Analysts forecast monthly YU7 sales of 30,000–40,000 units, contributing to Xiaomi’s 2025 target of 350,000–400,000 total EV deliveries, with ambitions to reach 700,000–800,000 in 2026.
Production Challenges and Expansion Plans
The YU7’s overwhelming demand poses significant production challenges for Xiaomi, which currently operates a single EV plant in Beijing. Wait times for the SU7 already exceed 30 weeks, and analysts estimate YU7 delivery delays could reach 18 months without substantial capacity increases. To address this, Xiaomi has acquired 485,100 square meters of land for a third EV plant, complementing its second factory under construction. The company aims to deliver 100,000 YU7 units by the end of 2025, with locked-in orders (requiring a 20,000 yuan non-refundable deposit) expected to ship within 1–5 weeks and customized models starting in August.
Xiaomi’s in-house development of core technologies, including its V8S super motor and battery systems, ensures quality control and cost efficiency. CEO Lei Jun emphasized the company’s rigorous testing, including a 1,310 km road test in February 2025, which validated the YU7’s range and autonomous driving capabilities under harsh winter conditions. However, a March 2025 SU7 crash raised concerns about Xiaomi’s driver-assistance systems, prompting stricter regulations in China.
Consumer Incentives and Market Strategy
To entice buyers, Xiaomi offers up to 66,000 yuan ($9,200 USD) in limited-time incentives for those placing a 5,000 yuan deposit by July 31, 2025. In a unique move, SU7 buyers awaiting delivery can switch to the YU7 until June 29, 2025, leveraging the SUV’s hype. The YU7’s premium features, such as massaging seats and advanced ADAS powered by NVIDIA’s Thor chip, align with Chinese consumers’ demand for tech-heavy vehicles.
Xiaomi’s global ambitions are also taking shape. While the YU7 is currently focused on China, the company has hired project managers and market researchers to evaluate expansion into markets like Europe and Australia. However, right-hand-drive markets like Australia may face delays due to production constraints.
The Road Ahead
The YU7’s record-breaking launch underscores Xiaomi’s rapid rise in the EV industry, just four years after establishing its automotive division. By undercutting Tesla’s Model Y on price and surpassing it in range and performance, Xiaomi is poised to capture significant market share. However, scaling production to meet demand remains a critical hurdle. With plans for new models and a target of over one million annual deliveries by 2026, Xiaomi is not just challenging Tesla but aiming to redefine the global EV landscape.
The YU7’s success reflects a broader shift in China’s EV market, where domestic brands like Xiaomi, BYD, and Xpeng are leveraging innovation and aggressive pricing to outpace foreign competitors. As Tesla faces declining market share and increasing pressure, the YU7’s launch marks a pivotal moment in the global EV race, with Xiaomi emerging as a serious contender.
