Xiaomi takes aim at Tesla’s bestselling car in China with its longer-range YU7

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Xiaomi, the renowned Chinese technology company, made a splash in the electric vehicle market by unveiling its first electric SUV, the YU7, in Beijing on May 22, 2025. The company plans to officially launch the YU7 in July, marking its foray into the competitive world of electric vehicles.

The YU7 is set to rival Tesla’s popular Model Y in the Chinese market, boasting an impressive driving range of at least 760 kilometers (472 miles) on a single charge. This surpasses the advertised range of Tesla’s Model Y, which stands at 719 km. The extended driving range of the YU7 is expected to appeal to consumers looking for a reliable and efficient electric vehicle option.

Analysts from Citi project that the YU7 could significantly impact Tesla’s market share in China, with an estimated price range of 250,000 yuan to 320,000 yuan ($34,700 to $44,420). The monthly sales forecast for the YU7 is around 30,000 units, with the potential for annual sales to reach 300,000 to 360,000 units once the model gains traction in the market.

The pricing of the YU7 places it in direct competition with Tesla’s Model Y, which starts at 263,500 yuan in China. Xiaomi is set to announce the official price of the YU7 at the car’s launch event in July, stirring anticipation among consumers and industry experts.

Tesla’s Model Y has been a top performer in the new energy vehicle segment in China, ranking second in sales in the six months leading up to April, according to Autohome. However, Xiaomi’s YU7 aims to shake up the market with its advanced features and competitive pricing.

Xiaomi’s previous electric car, the SU7 sedan, garnered attention for its affordability compared to Tesla’s Model 3. Despite facing challenges following a fatal accident involving an SU7 vehicle in China, Xiaomi remains committed to expanding its presence in the electric vehicle market.

In addition to the YU7 SUV, Xiaomi also introduced a premium phone at the launch event, showcasing the company’s diverse product lineup and technological innovation. With the official launch of the YU7 scheduled for July, Xiaomi is poised to make a significant impact in the electric vehicle industry.

Rival electric car companies like Xpeng are also gearing up for new releases, with Xpeng set to unveil the Max version of its popular Mona M03 car. The competition in the electric vehicle market is heating up, promising exciting developments and innovative offerings for consumers in the near future.