Xiaomi, the Chinese tech giant known for smartphones, is accelerating its electric vehicle (EV) ambitions with plans to sell its YU7 SUV globally by 2027, posing a direct threat to Tesla’s Model Y. The company’s automotive division secured 200,000 orders in just three minutes for the YU7 in late June, signaling strong demand in China, according to Yicai Global. As Tesla grapples with a 6.8% sales decline in China during Q2, Xiaomi’s rapid rise in the EV market demands attention from enthusiasts and industry watchers.

YU7’s Explosive Demand Outpaces Production

Xiaomi’s YU7, a sleek SUV competing in the executive E-Segment, has captured China’s attention, with 240,000 non-refundable orders placed within 18 hours of its debut. However, production bottlenecks are a significant hurdle. The standard YU7 faces wait times of up to 15 months, while the Max variant averages 9.5 months, as reported by Yicai Global. To address this, Xiaomi completed its Auto Phase II factory in June and is aggressively recruiting to boost output, according to Sina Technology. CEO Lei Jun 据报道 acknowledged the delays, advising urgent buyers to consider alternatives like the Tesla Model Y or Xpeng G7.

The YU7’s specs highlight its appeal:

Range: Up to 497 miles (800 km) on a single charge (CLTC standard).
Power: Dual-motor Max variant delivers 664 hp.
Price: Starting at approximately $41,500 (299,900 CNY).

Quality Control and Global Hurdles

Despite its popularity, Xiaomi faces quality concerns. Its SU7 sedan ranked last in the 2025 Q1 China automobile quality survey for large battery-electric sedans, per CarNewsChina. Lei Jun emphasized a quality-first approach for the YU7, stating, “Knowing Xiaomi’s cars would be scrutinized by millions of netizens, that every flaw would be magnified 10-thousand-fold, we prioritized quality above all from day one,” as quoted by Yicai Global. Improving quality control is critical to building consumer trust before tackling global markets.

Xiaomi’s Bold Plan To Take Its Electric Suvs Global By 2027 Challenges Tesla

International expansion by 2027 presents steep challenges. Xiaomi must navigate diverse regulatory standards, establish robust sales and service networks, and scale production to meet global demand. While the company’s digital ecosystem—integrating EVs with smart platforms—sets it apart, success hinges on resolving domestic issues first.

Xiaomi’s Threat to Tesla’s Dominance

Tesla’s struggles in China, where BYD holds the largest EV market share, create an opening for Xiaomi. The YU7’s competitive pricing and impressive range position it as a strong rival to the Model Y, China’s best-selling EV in 2024. Xiaomi’s ability to leverage its tech expertise could redefine EVs as connected platforms, appealing to tech-savvy drivers. However, with production delays and quality concerns, Xiaomi’s global ambitions remain a high-stakes endeavor.

展望未来

Xiaomi’s meteoric rise in China’s EV market underscores its potential to disrupt the global stage. The YU7’s rollout is a defining moment, testing Xiaomi’s ability to scale production and deliver consistent quality. While 2027 is an ambitious target for international sales, success could reshape the competitive landscape, challenging Tesla and other EV leaders. For now, Xiaomi must focus on satisfying its 240,000+ pre-order customers to build momentum for its global journey.

Photos courtesy of Xiaomi.