Xiaomi achieved unprecedented success with the launch of its new electric SUV model YU7 on June 26, 2025. In the first hour after the sales launch, the company recorded around 289,000 orders, a figure that far exceeded both the company’s and analysts’ expectations.
A Strong Debut in the EV Market
The new YU7 is offered at an introductory price of approximately 253,500 Yuan (about 35,000 Euros or around 30,250 US dollars), making it more affordable than the Tesla Model Y. The vehicle also impresses with technical specifications such as a range of up to 835 kilometers according to the Chinese CLTC standard – significantly more than the 719 kilometers of the Tesla Model Y – along with a comprehensive driver assistance software that is integrated at no extra cost.
Key features include the integration of Xiaomi’s digital ecosystem, including voice control, app links, and seamless smartphone connectivity. These features particularly appeal to tech-savvy buyer groups.
Pre-Orders as a Vote of Confidence
The demand consisted of over 196,000 paid reservations in the first two minutes and around 128,000 binding expressions of interest. Even though not every pre-order leads to a purchase, it signals loyal confidence in Xiaomi as a new force in the automotive market.
With this strong start, Xiaomi plans to deliver about 300,000 vehicles by the end of 2025 to secure its position in the competitive Chinese electric vehicle market.
Market Impact and Outlook
The success of the YU7 has propelled Xiaomi’s stock to an all-time high and put significant pressure on competitors like Tesla. Industry experts see Xiaomi’s aggressive price-performance ratio and innovative capabilities as serious competition for established players like Tesla and local rivals like BYD and Nio.
In summary, Xiaomi’s market strategy stands out as a combination of innovative technology and attractive prices, strengthening its brand loyalty from the world of smartphones.