Xiaomi’s billionaire founder, Lei Jun, has introduced the YU7, a new electric SUV aimed at challenging Tesla and Chinese EV giant BYD. Set for a summer 2025 launch, the YU7 closely resembles Tesla’s Model Y and features advanced electric technology, including a nickel-cobalt-manganese battery.
This announcement follows Xiaomi’s rapid expansion into the electric vehicle market, part of the company’s ambitious $10 billion EV strategy spearheaded by Jun. Earlier this year, Xiaomi launched the SU7 electric sedan and an upgraded “Ultra” version. The SU7 has already exceeded expectations, with a projected delivery of 130,000 units for 2024, surpassing its initial goal of 120,000.
Competitive Specifications
Regulatory filings with the Chinese Ministry of Industry and Information Technology reveal that the YU7 SUV measures 4,999mm in length, 1,996mm in width, and 1,600mm in height, with a wheelbase of 3,000mm. It weighs 2,405kg and comes equipped with a dual-motor all-wheel-drive powertrain offering peak power options of 220kW or 288kW. The SUV boasts a top speed of 253km/h, emphasizing Xiaomi's focus on high performance.
Stock Market Reaction
Xiaomi’s stock initially rose 3.9% on the Hong Kong exchange following the YU7’s unveiling, though it later retraced its gains.
Aiming for Market Leadership
Xiaomi's foray into electric vehicles aims to disrupt China’s lucrative EV market, currently dominated by Tesla and BYD. While critics note similarities between Xiaomi’s designs and Tesla’s, the company’s competitive pricing and technology-driven strategy position it as a strong contender in the growing sector.
The YU7 SUV marks Xiaomi's latest step toward establishing itself as a significant player in the global EV industry. With aggressive production targets and a robust innovation pipeline, the company is poised to make waves in the electric vehicle market.