Xiaomi launched its new YU7 SUV at 13 showrooms in Beijing on Thursday, aiming to compete with Tesla in the Chinese electric vehicle market.
The company will begin taking orders for the YU7 in July. Xiaomi’s previous model, the SU7 sedan, has outsold Tesla’s Model 3 on a monthly basis since December.
The YU7 launch comes amid challenges for Xiaomi, as new electric vehicle orders have declined following a fatal highway crash involving the SU7 in driving-assistance mode and subsequent customer complaints about misleading marketing. Xiaomi issued an apology for unclear advertising.
Visitors at Xiaomi’s flagship showroom in Beijing showed interest in the YU7’s design and its integration with Xiaomi’s personal gadgets and smart home products, highlighting local brand appeal over foreign competitors. Some consumers noted the vehicle’s features and pricing position it as a strong alternative to Tesla’s Model Y, which is priced from 263,500 yuan in China.
Xiaomi has yet to announce the official price of the YU7 but is expected to reveal it in July. The company aims to ship significant volumes of the new SUV over the coming years, targeting strong market growth despite recent setbacks.
