Xiaomi’s electric SUV tops China sales in January, sells twice as many as Tesla’s Model Y

2 2 minutes read

Xiaomi’s YU7 Electric SUV Outperforms Tesla’s Model Y in China

In a surprising turn of events, Chinese smartphone giant Xiaomi has managed to outshine Tesla in the electric car market in China, at least for the month of January. The company’s YU7 electric SUV took the top spot in sales last month, with an impressive 37,869 units sold, surpassing Tesla’s Model Y, which only managed to sell 16,845 vehicles, according to data from the China Passenger Car Association.

Xiaomi’s foray into the electric car market began about six months ago with the launch of the YU7 in the summer of 2025. The company, known primarily for its smartphones, boldly positioned the YU7 as a direct competitor to Tesla, offering it at a starting price that was 10,000 yuan ($1,450) lower than the Model Y in China. Xiaomi claimed that the YU7 excelled in key metrics such as driving range on a single battery charge, challenging Tesla’s dominance in the market.

Analysts had predicted that Xiaomi’s YU7 would pose a threat to Tesla’s Model Y, which had been the best-selling car in China in December. Despite outselling the Model Y in October, the YU7 did not secure the top spot in sales. Tesla has traditionally shown stronger sales performance over Xiaomi, consistently ranking higher in the Chinese market.

Excluding gasoline-powered vehicles, Tesla ranked fifth in China sales in 2025, while Xiaomi trailed behind in the tenth position. BYD led the Chinese auto market with over 3 million vehicles sold, followed by Geely with 2.6 million units, according to data from the China Passenger Car Association.

Despite an overall slowdown in China’s electric car market in recent months, the YU7’s impressive sales performance in January signals a promising future for Xiaomi in the automotive industry. The company’s earlier SU7 sedan faced challenges following fatal accidents involving driver-assist features and electrically-powered door handles. In response, Beijing has banned hidden door handles, and automakers have begun installing external lights to indicate when driver-assist features are in use.

Like many other Chinese electric car manufacturers, Xiaomi has plans to expand its reach beyond China, with ambitions to enter the European market next year. This strategic move reflects the company’s commitment to establishing a strong presence in the global electric vehicle market.

In conclusion, Xiaomi’s success with the YU7 electric SUV underscores the company’s determination to challenge industry giants like Tesla and establish itself as a key player in the electric car market. With innovative features, competitive pricing, and a focus on quality, Xiaomi is poised to continue making waves in the automotive industry.