Xiaomi introduced its latest electric SUV in Beijing on Thursday, marking another step in the smartphone maker’s ambitious push into China’s competitive auto market. The YU7, positioned as a rival to Tesla’s popular Model Y, is now on display at 13 Xiaomi retail locations across the capital, with pre-orders set to begin in July.
The launch follows the success of Xiaomi’s SU7 sedan, which has outsold Tesla’s Model 3 in China every month since its December debut. Industry analysts suggest the YU7 could challenge Tesla’s dominance in the SUV segment, though Xiaomi faces headwinds as a newcomer in the fiercely contested EV space.
The company has recently navigated setbacks, including a government probe into a fatal March crash involving an SU7 using driver-assistance features, as well as criticism over misleading marketing claims. Despite these challenges, consumer interest remains strong.
Among the early visitors to Xiaomi’s flagship store in Beijing’s Oriental Plaza was Liu Jiaxing, a 34-year-old tech enthusiast drawn to the YU7’s emerald green finish and sleek design. “Xiaomi’s integration with its smart devices and home ecosystem gives it an edge,” Liu said, highlighting how domestic brands are increasingly resonating with Chinese buyers.
The YU7’s rollout underscores Xiaomi’s determination to carve out a share of the world’s largest EV market—even as it works to rebuild trust and sustain momentum in a rapidly evolving industry.