The launch of Xiaomi’s new electric vehicle, the YU7 SUV, has significantly impacted the Chinese electric vehicle (EV) market, concurrently leading to a record high for Xiaomi’s stock price. This development has stirred the competitive landscape for rivals such as BYD, Li Auto, and NIO.
Xiaomi’s Bold Move into the EV Market
Details about the YU7 SUV were announced on May 22, 2025, with a market rollout expected by July 2025. Positioned as a highly competitive EV offering, the YU7 has captivated both consumers and industry experts. Unveiled with a price tag of approximately $35,000, it promises over 400 miles of real driving range, encased in a design reminiscent of luxury sports cars like Ferrari.
Record-Breaking Market Reception
Within just three minutes of opening sales, Xiaomi received over 200,000 real orders for the YU7, secured with soon-to-be non-refundable deposits. This swift uptake indicates strong consumer confidence and demand, which in turn propelled Xiaomi’s stock to new heights.
Impact on Competitors
This new wave of demand for Xiaomi’s EVs has unsettled established Chinese EV manufacturers including BYD, Li Auto, and NIO, who now face increased competition from Xiaomi’s aggressive market entry, enhanced technology integration from its smartphone business, and the brand’s strong loyalty base.
Previously, Xiaomi marked its debut in the automotive industry with the SU7 model in March 2024 which also saw significant success. However, the YU7’s announcement and impending release have notably shifted investor sentiment towards its immense market potential due to its blend of mass-market allure and premium features.
In conclusion, Xiaomi’s launch of the YU7 SUV is a pivotal achievement, representing a noteworthy event in the context of China’s fast-evolving EV industry. This scenario underscores how technology magnates entering the automotive sector can create significant disruptions among traditional manufacturers through innovation and robust brand influence.