Xiaomi Launches YU7 Electric SUV, Surges in Market Popularity

Hangzhou, China – Xiaomi launched its new electric SUV, the YU7, on Thursday, June 26, 2025, at a company store in Hangzhou. The launch generated significant consumer interest, with over 200,000 orders in just three minutes, according to CEO Lei Jun.

The YU7 is priced at 253,500 yuan ($35,322), which is 10,000 yuan cheaper than Tesla‘s Model Y, starting at 263,500 yuan in China. Lei Jun highlighted the competitive pricing as a strategy to attract customers in the growing electric vehicle (EV) market.

Analysts anticipated a price range for the YU7 between 250,000 yuan to 320,000 yuan ($34,800 to $44,590), predicting monthly sales of around 30,000 units. Citi projects annual sales could reach between 300,000 to 360,000 units as demand grows.

Although the YU7 excels in several metrics compared to the Model Y, it still falls short in driver assist features. The SUV incorporates driver-assist software powered by Nvidia‘s Thor chip. Pre-sales began at 10 p.m. Thursday, with deliveries expected within one to five weeks.

The YU7 features a driving range of at least 760 kilometers (472 miles) on a single charge, surpassing Tesla’s extended-range Model Y, which advertises a range of 719 kilometers. The extended range addresses consumer concerns about frequent battery charging.

During the launch, Xiaomi showcased several AI features in the YU7, including hand gesture controls for changing songs and the ability to use an app for locating the vehicle. The SUV also supports Apple Car Play and Apple Music.

In addition to the YU7, Xiaomi launched its new AI glasses, priced at 1,999 yuan ($279). These glasses can adjust lens tint and scan QR codes for payments, similar to mobile apps in China. A Xiaomi spokesperson indicated there are no current plans to sell the glasses outside of China.

As Xiaomi continues to expand its presence in the electric vehicle sector, the YU7’s strong debut could signal a shift in the competitive landscape against Tesla.