Chinese tech giant Xiaomi has launched its new electric SUV, the YU7, directly challenging Tesla’s Model Y in China’s competitive EV market. Priced at 253,500 yuan, the YU7 is around 10,000 yuan cheaper than Tesla’s Model Y, showing Xiaomi’s aggressive strategy to capture market share through affordability.
CEO Lei Jun aims for the YU7 to outsell Tesla’s Model Y, following Xiaomi’s earlier success with the SU7 sedan, which has already impacted Tesla’s Model 3 sales. Pre-orders for the YU7 opened early and quickly surpassed 200,000 units, displaying strong consumer interest.
The YU7 boasts an impressive driving range of approximately 830 kilometres (CLTC cycle), significantly higher than the Model Y’s 593 kilometres for the rear-wheel-drive version, thanks to a large 96.3 kWh lithium iron phosphate battery. The YU7 also features an 800-volt electrical system enabling ultra-fast charging—adding around 620 kilometres of range in just 15 minutes—outpacing Tesla’s 400-volt system.
Performance-wise, the base YU7 accelerates from 0 to 100 km/h in 5.8 seconds, comparable to Tesla’s 5.9 seconds, while the top YU7 Max variant delivers 681 hp and a 0-100 km/h time of just over 3.2 seconds. The YU7 is larger and heavier than the Model Y, offering more interior space and a bigger front trunk to prioritise passenger comfort with enhanced noise insulation and a smooth ride.
While Xiaomi’s driver-assistance system, powered by Nvidia’s Thor chip, is advanced, it still trails Tesla’s Full Self-Driving technology. The YU7 also includes AI features like gesture controls and smartphone integration.
In addition to vehicles, Xiaomi launched AI-enabled smart glasses priced at 1,999 yuan, featuring adjustable tinting, QR code payments, and AI-powered recognition tools, currently for the Chinese market only.