The World’s Best-Selling SUV Gains a New Rival
The Tesla Model Y has become the benchmark for electric SUVs, not just in the U.S., but especially in China – the world’s largest EV market. In fact, the Model Y was one of the world’s best-selling nameplates in 2024, surpassing even the sales of those powered by internal combustion engines.
Of course, those at the top will sooner or later face rivals, and one of the newest challengers comes from an unexpected yet increasingly popular player: the Chinese tech giant Xiaomi.
Best known for its smartphones, Xiaomi is quickly carving out space in the EV market. After making a strong debut with its SU7 sedan, which has outsold the Tesla Model 3 in China and even outgunned the Rimac Nevera at the Nürburgring, Xiaomi is now targeting SUV buyers with its newly launched YU7. Unsurprisingly, it’s off to a great start.
Xiaomi
Beating the Tesla Model Y on Paper
The YU7 is Xiaomi’s first electric SUV, and, on paper, it’s a bold and calculated strike at the Model Y. Slightly larger in size, the YU7 offers more presence on the road with a longer wheelbase and wider stance. Like the SU7 sedan, three variants are available – Standard, Pro, and Max – with both single- and dual-motor configurations.
Acceleration is impressive across the board, with the top-spec Max hitting 0 to 62 mph in just 3.23 seconds, compared to 4.3 seconds for the Tesla Model Y Long Range. Battery capacity is another advantage: up to 101.7 kWh in the YU7 Max, claiming a range of up to 519 miles, substantially higher than the Model Y’s 447 miles of maximum range in China.
The YU7 also operates on a more modern 800-volt electrical architecture versus Tesla’s 400-volt setup, which promises faster charging and better thermal efficiency.
Xiaomi
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Over 200,000 Reservations in Minutes
Naturally, no battle in the tightly contested EV market is complete without a price war. The YU7 undercuts the Model Y right out of the gate: its base model starts at RMB 253,500 (around $35,360), about RMB 10,000 (roughly $1,400) cheaper than the base Model Y.
Even the top-tier Max variant is more affordable than the fully loaded Tesla. Xiaomi also threw in limited-time benefits worth up to RMB 66,000 (approximately $9,200) for early buyers. That tactic worked as over 200,000 reservations were logged within just three minutes of the order books opening.
Deliveries are expected within 1-5 weeks for early adopters, and Xiaomi even allows existing SU7 order holders to switch to the YU7 until June 29. With Tesla having issues selling its EVs this year in Europe and elsewhere, it’s safe to say that Xiaomi is off to a great start.
Xiaomi