Prime Highlights
- Xiaomi’s YU7 SUV ranked first in China’s January auto sales, overtaking long-time rival Tesla.
- The YU7 sold nearly twice as many units as the Tesla Model Y, marking a major win for Xiaomi’s fast-growing electric vehicle business.
Key Facts
- Xiaomi sold 37,869 units of the YU7 in January, compared to 16,845 units of the Tesla Model Y, according to data from the China Passenger Car Association published by Autohome.
- The YU7 was launched in summer 2025 at a starting price 10,000 yuan ($1,450) lower than the Model Y in China.
Background:
Xiaomi’s electric vehicle venture gained major ground in China in January as its YU7 SUV became the country’s best-selling car, overtaking longtime market leader Tesla.
Data released by the China Passenger Car Association and published by online auto platform Autohome showed that Xiaomi sold 37,869 units of the YU7 last month. The figure was more than double the 16,845 units recorded by the Tesla Model Y during the same period. The Model Y, which ranked first in December, fell sharply to 20th place overall in January.
Xiaomi introduced the YU7, its second electric vehicle, in the summer of 2025. The company priced the SUV about 10,000 yuan ($1,450) lower than the Model Y in China. It also promoted the vehicle’s driving range and performance features as stronger than Tesla’s offering. Analysts had predicted that the YU7 would cut into Tesla’s market share, and January’s figures suggest that shift may be underway.
Despite the strong monthly showing, sales rankings in China often fluctuate. Tesla has historically maintained steady demand in the country. In 2025, Tesla ranked fifth among new energy vehicle sellers, while Xiaomi placed tenth. Domestic giant BYD led the overall market last year with more than 3 million vehicles sold, followed by Geely.
Xiaomi’s rapid rise comes even as China’s electric vehicle market shows signs of slowing growth. At the same time, the company faces regulatory attention after fatal accidents involving its earlier Xiaomi SU7 sedan and driver-assist features. Authorities have since tightened safety rules.
Looking ahead, Xiaomi plans to expand its electric vehicle business overseas, including entering European markets next year.
