BRIEF: Xiaomi debuts YU7 electric SUV, starting at $35,400

Xiaomi (1810.HK) launchedits first electric SUV, the Xiaomi YU7, on Thursday, taking pre-orders with a starting price of 253,500 yuan ($35,400), directly challenging Tesla’s Model Y, which starts at a similar 263,500 yuan.

Xiaomi CEO Lei Jun said the YU7 surpasses the Model Y in several key areas, including interior space, performance, driving range and charging time. He added that the vehicle also features optimized soundproofing and sun protection, claiming that “No other vehicle under 1 million yuan can match this level of performance.”

Caixin reported that even though the YU7 is equipped with the same assisted driving hardware as the company’s original electric vehicle, the SU7, Lei focused more on its battery and structural safety features this time, while downplaying its smart driving features. In March, a serious accident involving the standard version of the Xiaomi SU7 in Anhui, which resulted in three fatalities, triggered heated debate over the safety of entry-level assisted driving systems and whether Xiaomi had overstated their capabilities.

Despite the controversy, SU7 sales have been strong. The model has delivered a cumulative 258,000 units since April 2024. Xiaomi has set a 2025 sales target of 350,000 vehicles. In the first quarter, revenue from its auto division reached 18.1 billion yuan, with an average selling price of 238,000 yuan per vehicle. Its gross margin improved to 23.2%.

At the same launch event, Xiaomi also introduced its first AI-powered smart glasses, priced at 1,999 yuan. The device supports first-person video recording, real-time translation and QR code payments. Lei Jun called it a strategic product and a future gateway to personal AI.

Xiaomi’s share opened 7.9% higher on Friday and closed at HK$59.40 by the midday break, up 4.39%.

By Lee Shih Ta

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