On December 10, 2024, Xiaomi introduced its first electric sport utility vehicle (SUV), the YU7, aiming to rival Tesla's Model Y. The launch is scheduled for next summer.
The Chinese company, primarily known for its smartphones, unveiled the vehicle on Weibo, presented by founder Lei Jun. The YU7 measures five meters in length and will be powered by a nickel-cobalt-manganese battery produced by CALT.
According to China's Ministry of Industry and Information Technology, the SUV will offer power options of 220 kW and 288 kW. This launch marks a significant step in Xiaomi's strategy to invest $10 billion in electric vehicle production.
The YU7 is expected to position Xiaomi against major competitors like BYD and Tesla in a highly competitive market. Following the announcement, Xiaomi's stock rose by 3.9% in Hong Kong but closed unchanged. Since the March launch of its first model, the sedan SU7, Xiaomi's shares have gained over 90%.
Details regarding the SUV's specifications and pricing are yet to be disclosed. Analysts from Macquarie estimate the YU7 will be priced 10% to 15% higher than the SU7, placing it between 250,000 and 330,000 yuan (approximately €32,538 to €42,950). In comparison, the starting price for the Model Y in China is €32,531.
Xiaomi anticipates delivering 130,000 units of the SU7 by year-end, exceeding previous estimates by 10,000 vehicles.