Chinese language smartphone firm Xiaomi launched its YU7 electrical SUV in summer time 2025, taking direct goal at Tesla’s Mannequin Y.
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BEIJING — Xiaomi‘s electrical automotive enterprise has succeeded in dethroning Tesla in China, no less than in January.
The Xiaomi YU7 SUV ranked first in China by gross sales final month, with 37,869 models offered, twice as many as Tesla’s 16,845 Mannequin Y autos, in response to knowledge from the China Passenger Automobile Affiliation.
The Mannequin Y, which was the best-selling mannequin in December, plunged to twentieth place in January. Amongst new vitality autos, it additionally fell from the primary place to seventh over the identical interval.
The figures embrace each electrical and gasoline-powered autos and have been revealed late Thursday by on-line automotive gross sales platform Autohome.
Xiaomi began promoting the YU7, its second electrical automotive mannequin, roughly half a 12 months in the past in the summertime of 2025.
The Chinese language firm, finest recognized for its smartphones, hasn’t been shy about its goal to tackle Tesla. Xiaomi launched the automotive at a beginning value that was 10,000 yuan ($1,450) beneath the Mannequin Y in China. The corporate claimed the mannequin beat Tesla on key metrics similar to driving vary on a single battery cost.
Analysts final 12 months predicted the YU7 would take market share from the Mannequin Y, Tesla’s best-selling automotive in China. In December, the Mannequin Y ranked first in month-to-month gross sales, forward of BYD‘s budget-priced Qin Plus automotive. Xiaomi’s YU7 ranked third.
Month-to-month gross sales figures may be unstable. Whereas the YU7 did outsell the Mannequin Y in October, the Xiaomi automotive didn’t rank first. Tesla has up to now been persistently stronger in gross sales.
Excluding gasoline-powered vehicles, Tesla ranked fifth in China gross sales final 12 months, whereas Xiaomi positioned tenth. For all of 2025, BYD led China’s auto market with over 3 million autos offered, adopted by Geely at 2.6 million, in response to China Passenger Automobile Affiliation knowledge.
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The YU7’s sturdy gross sales in January got here regardless of an total slowdown in China’s electrical automotive market in latest months.
Xiaomi’s earlier SU7 sedan has additionally confronted scrutiny following deadly accidents involving driver-assist options and electrically-powered door handles. Beijing has since banned hidden door handles, whereas automakers have began putting in exterior lights that point out when driver-assist is in use.
Like most Chinese language electrical automotive corporations, Xiaomi additionally plans to develop abroad, together with into Europe subsequent 12 months.