Xiaomi, the world’s third-largest smartphone maker, is preparing to launch its highly anticipated electric SUV, the YU7, in July 2025, according to a post from company founder and CEO Lei Jun on Weibo. The announcement marks a significant move as Xiaomi accelerates its diversification into the electric vehicle (EV) space, intensifying competition with global giants like Tesla. BEIJING (Reuters)
Highlights:
Xiaomi’s new electric SUV, the YU7, is set to debut in the Chinese market in July.
CEO Lei Jun confirmed no pricing details or pre-orders will be shared at the pre-launch event.
The YU7 is expected to directly compete with Tesla’s Model Y, which starts at ¥263,500 in China.
Xiaomi Ramps Up EV Strategy with Second Electric Vehicle Model
The upcoming YU7 will be Xiaomi’s second electric vehicle offering, following the earlier launch of the SU7 sedan. Lei Jun confirmed that the formal unveiling of the YU7 will take place later on Thursday but emphasized that the company will not reveal pricing or initiate pre-orders at this stage. The SUV will play a critical role in expanding Xiaomi’s footprint in the rapidly growing EV segment, leveraging its strong consumer electronics brand presence to win over automotive buyers.
Highlights:
YU7 is Xiaomi’s second EV following the debut of the SU7 sedan.
SUV launch strategy mirrors initial SU7 reveal — product-first approach, with pricing later.
Xiaomi aims to leverage smartphone ecosystem to drive EV adoption.
YU7 to Compete with Tesla’s Model Y Amid Pricing and Innovation Push
Positioned as a direct rival to Tesla’s best-selling Model Y, the Xiaomi YU7 will target the mid-to-high-end segment of China’s electric SUV market. The redesigned Model Y, launched earlier this year, is currently priced from ¥263,500 ($36,579), setting the competitive benchmark for Xiaomi. Market analysts expect Xiaomi to price the YU7 aggressively to penetrate the segment, potentially undercutting Tesla while offering advanced features and software integration rooted in its smartphone and chip development expertise.
Highlights:
YU7 aims to challenge Tesla’s market share in China’s premium EV segment.
Tesla’s Model Y (from ¥263,500) serves as pricing benchmark for Xiaomi’s YU7.
Xiaomi likely to integrate its proprietary software ecosystem and AI into the SUV.
Xiaomi to Reveal XringO1 Mobile Chip and New Flagship Smartphone
Alongside the YU7 reveal, Xiaomi will unveil several new hardware innovations at its product event. Among them is the XringO1, the company’s self-developed advanced mobile chip designed to enhance AI processing capabilities across its devices. The event will also feature a new flagship smartphone model, showcasing Xiaomi’s commitment to vertical integration and cross-platform synergy between its smart devices and EVs.
Highlights:
Xiaomi to debut its proprietary XringO1 chip designed for AI performance.
New flagship smartphone also expected to be showcased during Thursday’s event.
Product announcements underscore Xiaomi’s ambition to build a tightly integrated hardware ecosystem.
