In the fiercely competitive new energy vehicle market, Xiaomi YU7 has attracted much attention since its debut, and its first sales performance has sparked heated discussions in the industry.
As the second mass-produced model of Xiaomi Motors, YU7 shoulders the important task of consolidating the brand position and expanding market share. At present, Xiaomi's case has become a permanent topic in the meetings of the marketing departments of every auto company.
June 29, 2025, Guangzhou, consumers experience the Xiaomi YU7 car in a Xiaomi store.
Xiaomi YU7 was officially unveiled at Xiaomi's press conference on June 26. Official data showed that the pre-order volume exceeded 200,000 units in just 3 minutes and exceeded 289,000 units in 1 hour. Such an astonishing number of orders demonstrates the strong market appeal of Xiaomi YU7.
The reasons for the explosive growth in its orders are multi-dimensional.
In terms of product strength, it inherits the advantages of Xiaomi SU7 and innovates, continuing the family design language as a whole. The long front and short rear are equipped with inward-folding electric hidden door handles, frameless doors, and ring-shaped through-type taillights. The drag coefficient is as low as 0.245Cd. It is not only beautiful, but also takes aerodynamics into consideration to reduce energy consumption. The length, width and height of the vehicle are 4999mm, 1996mm, and 1600mm, and the wheelbase is 3000mm. The space layout is reasonable to meet the needs of family travel. In terms of power and endurance, single-motor and dual-motor versions are available. The four-wheel drive high-performance version has a total power of 508kW and can accelerate from 0 to 100 km/h in just 3.23 seconds. It is equipped with a 96.3kWh or 101.7kWh battery pack. The CLTC range is up to 835 kilometers. It also supports 800V high-voltage fast charging to solve users' mileage and energy replenishment anxiety.
In terms of smart cockpit, the Pengpai OS car system realizes seamless interconnection between hands, car and home, such as using the mobile phone to turn on the air conditioner in the car and control the smart home in advance. The Xiaomi Sky Screen panoramic display is full of technology, adding fun to driving.
Xiaomi's brand ecology and marketing also contributed to the success of YU7. With the brand influence accumulated over the years in the fields of smartphones and home appliances and a large group of "Mi fans", Xiaomi has built a complete ecological system. Consumers recognize the Xiaomi brand and have more trust and expectations for its automotive products. At the press conference, Lei Jun personally stood on the stage and emphasized that it is benchmarking Tesla Model Y, positioning itself as "high performance + high cost performance" to attract consumers who pursue quality and technology.
Among the many models joining the siege of Tesla Model Y, the Xiaomi YU7, which has been selling like hot cakes, is obviously the most successful.
In a Xiaomi car showroom in Beijing, dozens of people gathered around the YU7 display car. Mr. Shi, a 26-year-old financial practitioner and Tesla Model Y owner, said he was considering buying a YU7 for his father who drives a Mercedes-Benz, "We can drive the Model Y and YU7 in turn." He particularly mentioned that Xiaomi's strength in supply chain management was impressive.
Since Xiaomi launched its first model, the SU7 sedan, in March last year, it has caused a stir in the Chinese electric vehicle market. Since December last year, the monthly sales of the SU7 have continued to exceed those of the Tesla Model 3, and even won praise from Ford CEO Jim Farley.
As Xiaomi's second mass-produced model, the YU7 starts at 253,500 yuan, nearly 4% lower than Tesla's Model Y. Analysts pointed out that this could lead to further loss of market share for the US automaker.
As local competitors continue to win consumer favor with innovative features, Tesla's share of China's electric vehicle market has fallen from a peak of 15% in 2020 to 10% in 2024, and further declined to 7.6% in the first five months of 2025.
China is Tesla's largest single market, with about one-fifth of its revenue coming from the Chinese market in 2024. Citi analysts pointed out in a research report that if Tesla wants to compete with Xiaomi, it may need to further reduce prices, provide fully autonomous driving (FSD) software for free, and introduce more financial incentives.
However, despite its popularity, Xiaomi Auto's road ahead is not all smooth sailing.
The explosive growth of orders has highlighted the pressure on Xiaomi's production capacity. Public data shows that the current annual production capacity of Xiaomi's first phase factory is only 150,000 vehicles, and SU7 has occupied a large number of production capacity indicators. Although the second phase factory is expected to have an annual production capacity of 150,000 vehicles, the mass production time is still unclear. Some analysts believe that even if the second phase factory quickly mass produces, facing 240,000 locked orders, some consumers may have to wait until early 2027 to pick up the car, which is likely to cause consumer dissatisfaction and affect the brand's reputation.
At the same time, doubts about the quality of Xiaomi YU7 have already emerged. Recently, a track test video released by the automotive media Dongchedi showed that the brake disc caught fire after continuous high-intensity braking. Xiaomi officially responded that it was the organic material of the brake pad that caught fire under extreme working conditions, and the brake system did not fail, but this incident still caused public concerns about the safety and reliability of the vehicle.
Although brake disc fire is an extreme case, it is difficult for ordinary consumers to understand the technical details, which can easily cause panic. Professional tests are weakly related to daily driving scenarios and may mislead users' expectations of vehicle performance. In the promotion of new energy vehicle technology, car companies often over-pursue "extreme scenario" marketing, but ignore the actual needs of users. This dispute is a typical example.
In addition, some netizens reported that when placing an order, it was shown that both the standard version and the Pro version had the automatic anti-glare function for the exterior mirrors, but after ordering the car, in the "Quickly Understand the Version Differences" section, only the Max version had this function, which was suspected to be a case of secretly changing the configuration. At the same time, some store display cars were found to have poor quality control of parts, such as poor die-casting of the lower arm, pits on the surface, and unremoved burrs on the front body die-casting.
Xiaomi YU7 is a microcosm of the development of the new energy vehicle industry. Its success and challenges reflect the opportunities and problems of the industry. In the long run, if Xiaomi Auto wants to continue to succeed, it needs to solve the problems of production capacity and quality. On the one hand, it needs to speed up factory construction and capacity improvement, optimize production processes and supply chain management; on the other hand, it needs to strengthen quality control, improve product safety and reliability, and enhance user experience.
After all, the product definition of the new era may be able to stand on the shoulders of giants, but the underlying qualities of automobiles still cannot bypass the threshold created by the century-old automobile industry.
