Xiaomi is gearing up to make a powerful statement in the electric SUV market with the upcoming launch of its YU7 SUV in July.
The new model, unveiled on May 22, aims to directly compete with the Tesla Model Y by offering a high-end electric vehicle experience at a more attractive price point.
Xiaomi CEO Jun Lei has confirmed that while the YU7 will be competitively priced, it will sit above the company’s SU7 sedan, distancing itself from earlier rumors of a 199,000 yuan ($27,600 USD) starting price.
Positioned as a premium SUV, the Xiaomi YU7 combines luxury design with advanced technology. Key features include a futuristic “Hypervision” panoramic dashboard and a cutting-edge 700 TOPS Lidar-assisted autonomous driving system.
These enhancements position the YU7 as a top contender in China’s crowded EV segment, competing not only with Tesla’s Model Y but also with rivals such as the Zeekr 7x and Luxeed R7.
Pricing strategy is central to Xiaomi’s market approach. The Tesla Model Y currently sells for between 263,500 and 313,500 yuan ($36,400–$43,300 USD) in China.
Xiaomi aims to undercut these figures while maintaining a premium image, replicating its successful strategy with the SU7 sedan, which outpriced the Tesla Model 3.
Industry insiders expect the YU7 to start at around 245,900 yuan ($34,100 USD), creating a pricing sweet spot that offers strong value without cannibalizing sales from Xiaomi’s existing lineup.
To enhance appeal, Xiaomi plans to introduce multiple YU7 variants. The mid-tier Pro version, featuring air suspension and dual motors, is expected to be priced at 275,900 yuan ($38,300 USD), while a fully loaded Max variant could reach 329,900 yuan ($45,800 USD). This tiered approach ensures broad market coverage while reinforcing the YU7’s premium identity.
Following the success of the SU7, Xiaomi’s production and supply chain capabilities have improved significantly. Analysts predict the YU7 could receive over 200,000 pre-orders within the first 24 hours of launch, underscoring the buzz surrounding its debut.
With a refined product and strategic pricing, the YU7 is poised to disrupt the mid-to-high-end electric SUV segment and challenge Tesla’s dominance in China.