Xiaomi Launches Luxury YU7 SUV with Competitive Pricing
In a bold move that shakes up the electric vehicle landscape, Chinese tech giant Xiaomi has introduced its luxury YU7 SUV, setting the base price at 253,500 yuan ($35,322). This pricing undercuts Tesla's Model Y in China, which starts at 263,500 yuan, marking a strategic underpricing of the popular electric SUV.
Design and Market Ambitions
The YU7 SUV, unveiled by Xiaomi CEO Lei Jun, aims to challenge Tesla not only on price but also performance. Lei Jun emphasized that the YU7 surpasses the Model Y across several key specifications, although it currently falls behind on advanced driver assistance features.
Equipped with the latest driver assist technology powered by Nvidia’s Thor chip, the YU7 delivers a compelling package. Pre-sales kicked off promptly at 10 p.m. on launch day, with anticipated delivery windows ranging between one to five weeks. Remarkably, within just three minutes of opening orders, Xiaomi reported more than 200,000 reservations, demonstrating immediate and robust consumer interest.
Competitive Range and Features
Earlier projections suggested that the YU7 would be priced between 250,000 and 320,000 yuan (~$34,800 to $44,590), with monthly sales estimates around 30,000 units. Financial analysts anticipate that once production stabilizes, annual sales could reach between 300,000 to 360,000 units, reflecting strong market demand.
Xiaomi’s confidence stems partly from the vehicle’s impressive range—claimed to be at least 760 kilometers (472 miles) per charge, which comfortably exceeds Tesla’s extended-range Model Y offering of 719 kilometers. Range remains a critical factor for electric vehicle buyers concerned about frequent recharging.
Additionally, the YU7 integrates smart features such as AI-based controls allowing drivers to change music with simple hand gestures or locate their vehicle through a smartphone app. The SUV also supports Apple CarPlay and Apple Music, catering to a tech-savvy audience.
Earlier Milestones and Expanding Tech Portfolio
Following its SU7 sedan debut last year, which also priced below Tesla’s Model 3, Xiaomi is clearly ramping up its EV ambitions. The YU7 launch event was moved ahead of schedule from July, highlighting the brand's urgency in capturing market share.
Introducing Xiaomi’s AI Glasses
Merging automotive innovation with wearable technology, Xiaomi also unveiled its new AI smart glasses on the same day. Priced at 1,999 yuan ($279), these glasses offer features such as adjustable tint, QR code payment scanning, photo and video capture, AI translation, and interactive object recognition—features that parallel offerings like Meta’s Ray-Ban smart glasses, yet tailored specifically for the Chinese market.
Currently, Xiaomi has no announced plans to market these AI glasses internationally, while Meta’s product remains unavailable officially in China.
What This Means for the EV Market
Xiaomi’s entry with an aggressively priced yet feature-rich luxury SUV signals intensifying competition in China’s electric vehicle sector. Consumers can expect more options that blend affordability, advanced technology, and extended driving ranges, putting pressure on established players like Tesla to innovate further and reconsider pricing strategies.
