New Delhi: Xiaomi Corporation is looking to shake off scrutiny of tech-enhanced driving systems with a 253,500 yuan ($35,360) sport utility vehicle that aims at Tesla’s popular Model Y. Xiaomi founder Lei Jun attacked Tesla head-on during a Thursday launch event, stacking his truck against the Model Y much as he typically compares Mi devices with the iPhone.
The YU7’s price tag is primarily in line with analysts’ expectations, compared with the 263,500 yuan for the latest version of the Model Y, the most popular SUV in China and the model that Lei has said he wants to outdo. BYD Co.’s Tang L SUV, slightly smaller than the YU7, sells for between 239,800 yuan and 289,800 yuan.
Big or small, there’s a #XiaomiYU7 or #XiaomiSU7 for every shelf.
Choose from the 1:18 alloy model of #XiaomiSU7, or the 1:43 alloy car model and the 1:64 pull-back version of both models.
Which one is your favorite? #NewBeginnings pic.twitter.com/B9CECMWMKO
— Xiaomi (@Xiaomi) June 26, 2025
Lei, who shot to fame with bold plans to unseat Apple in China, is counting on EVs to take on Elon Musk’s Tesla and fuel the final chapter of his entrepreneurial career. He has pushed Xiaomi into new arenas, from chip design to AI glasses, pledging to spend 200 billion yuan over five years to try to turn the Chinese company into a global device leader.
The company began taking pre-orders Thursday with a 5,00 yuan deposit. In a surprise twist, Lei declared that buyers of Xiaomi’s first car, the SUV sedan, have three days to switch to the SUV if they haven’t taken delivery of the original vehicle. Xiaomi announced shortly after the event that it had processed more than 200,000 pre-orders for the YU7 within three minutes.
The top model costs 329,900 yuan and can travel 760 kilometres on a single charge, accelerating to 100 kilometres per hour in 3.23 seconds. They come in 9 colours, all equipped with lidar, which enhances driver assistance technology, and an 800-volt platform for fast charging. Many feature the touches and amenities now familiar to Chinese drivers, including large touch screens, massage chairs, and drawers. The new model will be a key test of demand for Xiaomi cars after a fatal accident involving an SU7 sedan that sparked scrutiny from Chinese authorities and hammered orders.
Investors have warmed to that vision, sending shares surging. Now worth $187 billion, it’s bigger than BYD, the EV powerhouse that dominates the Chinese market, and its SU7 is outselling the Tesla Model 3 so far this year. Beyond cars, Thursday’s event also showcased a pair of 1,999 yuan black-rimmed AI glasses that can film videos and answer questions based on visual cues, the MIX Flip 2, Xiaomi’s new folding phone, and a tablet that uses its in-house Xring O1 chip.
