Chinese tech giant Xiaomi has moved the launch of its new electric vehicle (EV), the YU7 SUV, to the end of June. This is earlier than the original July schedule. The company’s CEO, Lei Jun, announced the news on Weibo, a Chinese social media platform.
The YU7 is Xiaomi’s second EV model. It is expected to compete directly with Tesla’s popular Model Y. Lei Jun said, “We are making the preparations, and will see you at the end of June.”
Xiaomi is increasing production capacity to meet strong consumer interest. The company had planned to begin deliveries in July but has now accelerated the timeline. Xiaomi has not disclosed exact pricing or delivery details yet.
Earlier, Xiaomi’s president, Lu Weibing, shared that presale inquiries for the YU7 far exceeded those for Xiaomi’s first model, the SU7 sedan. The SU7, which competes with Tesla’s Model 3, launched in March 2024 and quickly sold over 70,000 units in its first month.
On June 1, Lu announced that Xiaomi was speeding up mass production of the YU7.
In mainland China, Tesla’s Model Y starts at around 263,500 yuan (approximately US$36,677). Xiaomi has indicated that the YU7 could cost 60,000 to 70,000 yuan more due to its advanced features.
This upcoming launch comes after a serious accident involving Xiaomi’s driving-assistance system earlier this year. In March, an SU7 crashed in Anhui province, killing three people. The vehicle was traveling at 116 km/h with the driver-assistance system engaged. Xiaomi reported the system alerted the driver two seconds before hitting a barrier.
Following the accident, China’s Ministry of Industry and Information Technology held a meeting with 60 companies. It emphasized strict compliance with regulations on self-driving technologies and warned against exaggerating their capabilities.
Despite this setback, Xiaomi’s EV sales remain strong. In May, the company ranked among the top 10 EV makers in China, delivering 28,000 vehicles — the same as in April and more than double the volume from the previous year.
Overall, sales of electric vehicles by Chinese manufacturers, including battery-only and hybrid models, rose nearly 30% year-on-year in May. They reached over 1.02 million units, according to the China Passenger Car Association. Factors driving growth include government policies to encourage domestic consumption, rising exports, and strong performance from leading brands like BYD and Geely.
Xiaomi’s EV business earned 18.1 billion yuan in revenue during the first quarter, with 75,869 SU7 cars delivered. However, the company reported an adjusted net loss of 500 million yuan, partly due to investments in EVs and other new projects.
Since the March accident, Xiaomi’s shares listed in Hong Kong have recovered strongly. The stock rose nearly 50% from its April lows and gained 4% to HK$54 on Monday morning.
