Xiaomi takes aim at Tesla with 4% cheaper YU7 SUV, a Model Y competitor

South China Morning Post

3 days ago

Xiaomi, the Chinese smartphone maker and electric-car start-up, priced
its YU7 sport-utility vehicle (SUV) at a 4 per cent discount to Tesla's bestselling Model Y, a move that is expected to draw a wave of orders in a cutthroat market where even the strongest players struggle to break even.
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The YU7, Xiaomi's second production model, starts at 253,500 yuan (US$35,322), compared with 263,500 yuan for the Model Y's basic edition, the Beijing-based company announced at a launch event on Thursday evening.
'We have set an unreasonable goal of beating the Model Y,' Xiaomi CEO Lei Jun said on Weibo on Monday. 'Based on the strength of our product, I am fully confident that we can achieve the goal.'
The new SUV, featuring a preliminary self-driving system, a large multimedia screen and a high-performance battery, was seen as a game changer in mainland China's premium electric-vehicle (EV) segment, where Tesla has seen its advantage erode.
It has a driving range of 835km, while Tesla's Shanghai-made Model Y can go as far as 593km on a single charge.
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The Model Y , with annual deliveries of more than 480,000 units on the mainland, outsold all other SUVs – including petrol-powered cars – in 2024, according to the China Passenger Car Association.
Xiaomi began taking orders for the new car after the launch event and said it would deliver the first batch of YU7s next week.