It was 9:48 p.m. in Beijing, right outside the bustling New China International Exhibition Center, where a hum of excitement filled the air. Crowds huddled together, frantically refreshing their phones as they awaited the launch of Xiaomi’s much-anticipated new products—everything from smart vacuum cleaners to the latest smartphones. But the true star of the show, the one everyone was really buzzing about, was Xiaomi’s entry into the electric vehicle market with the unveiling of the YU7, a slick crossover with striking Ferrari-esque lines.
The thrill was palpable. Xiaomi’s CEO, Lei Jun, had just dropped big news: the YU7 would not just challenge the Tesla Model Y but do so at a price that undercut China-made Teslas significantly. If people were already clamoring for Xiaomi’s popular SU7 sedan, it seemed only logical that the YU7 would generate similar enthusiasm.
As the clock struck 10:00 p.m., eager buyers were poised to make their reservations, ready to part with around $700. And sure enough, in just three short minutes, Xiaomi reported an incredible 200,000 orders. By the end of the hour, they had amassed a staggering 289,000 orders, confirming that 240,000 of those were serious buyers. The YU7 was effectively sold out until 2027—a testament to Xiaomi’s swift rise in the competitive automotive market.
Having taken the YU7 for a spin on the vibrant streets of Beijing, I can assure potential buyers—they’re in for a treat. For anyone not on board with this new wave of electronic vehicles, whether they’re local brands or foreign imports, the heat is on.
*Full Disclosure: Xiaomi sponsored my trip from Ohio to Beijing, giving me the chance to test drive the YU7, as well as tour their headquarters and factory.*
Here’s a quick glance at the impressive specifications of the Xiaomi YU7:
– Base Price: Estimated at $35,000
– EV Range: An impressive 519 miles (according to the CLTC standard)
– Drive Type: All-Wheel Drive (AWD)
– Charge Time: A rapid 10-80% charge in just 12 minutes
– Battery: 101 kWh capacity
– As-Tested Price: Estimated at $47,000
– Acceleration: 0 to 62 MPH in a mere 2.98 seconds
– Power Output: A whopping 680 horsepower
Xiaomi’s ability to capture the automotive market might feel unexpected, especially since many people in the West mainly recognize the brand for its earbuds and smartphones. Yet here we are, witnessing a Chinese company reconfiguring the auto landscape and outselling many competitors. This isn’t just another startup trying to make a name; Xiaomi is setting the pace while others struggle to keep up.
So how did they manage this? The answer isn’t straightforward. While the West is only starting to grasp how Xiaomi captivated its domestic market, it’s important to understand the backdrop—a backdrop that includes fierce competition and significant shifts within the Chinese automotive industry.
Understanding the Landscape
The Chinese auto market is currently rife with challenges: scandals over used cars, factories running under capacity, and fluctuating demand for electric models. Xiaomi’s rapid ascent stands out like a beacon amidst this tumult. Particularly, it’s clear there’s a market craving for innovation paired with affordability—a combination that Xiaomi has harnessed beautifully.
Despite gaining recognition, Xiaomi’s cautious approach to showcasing their vehicles in the West raises questions. Why aren’t they sharing more insights about their triumphs? Is it a genuine hesitation, or is there a savvy strategy at play to keep competitors at bay? As a writer immersed in the EV scene, I find it a bit frustrating to see such a successful brand shrouded in mystery.
While tech companies have attempted to pivot into cars, many have stumbled. Just look at Apple, which reportedly abandoned its own car project after years of deliberation. In contrast, Xiaomi has proven there’s a roadmap to success for tech firms in this aggressive race.
So when the company opened its doors to a select group of international journalists to offer a first-hand look at their factory and the YU7, I didn’t hesitate to jump at the opportunity.
Xiaomi’s Evolution
Since the launch of the Mi 1 back in 2011, Xiaomi has consistently focused on delivering competitive specs and quality at prices that undercut industry heavyweights like Apple and Samsung. This approach has extended beyond smartphones to encompass a wide array of tech products, including tablets, smartwatches, televisions, washing machines, and beyond.
And now, here they are—venturing into the automotive sector. This is a bold and strategic move that speaks volumes about the brand’s ambition and understanding of market dynamics.
In an era where consumers crave innovation and practicality, Xiaomi is forging a path that disrupts traditional automotive norms. They’re not just making cars; they’re redefining the landscape with a clear vision of what modern vehicles can and should be. It’s an exciting time for car enthusiasts and tech fans alike, and the story of Xiaomi is just beginning.Xiaomi has made quite the splash in the world of smartphones, and now it’s stepping into the automotive arena with its SU7 and YU7 models, leveraging the same winning formula that brought its phones so much success: impressive features wrapped up in a sleek design, all at a wallet-friendly price.
You don’t need to be an automotive expert to appreciate the design of these cars. At first glance, the aesthetics and build quality speak volumes. The SU7 and YU7 utilize the self-developed Modena platform, a modern engineering achievement that, while ambitious in name, doesn’t stray too far from standard practices in car engineering. Sure, there are some intriguing features, like the upside-down battery cells that aim to direct any potential thermal runaway incidents away from passengers. However, much of the platform aligns with contemporary design trends that prioritize efficiency and cost-effectiveness.
One standout feature is the megacasting technology, branded by Xiaomi as Hypercasting. This technique has been adopted by others in the industry, including Tesla, to create large chassis components with fewer parts. The rear floor of the YU7 is a single megacast piece, which simplifies assembly and repair while improving structural integrity — an innovation that feels both practical and beneficial to the driver.
The YU7 also incorporates a sophisticated cell-to-body design, integrating the battery case into the structure of the vehicle instead of treating it as an afterthought. This is a common practice for serious electric vehicle manufacturers today, allowing for greater strength and space efficiency. While these technologies aren’t groundbreaking, Xiaomi’s approach aims to streamline production and reduce costs, thanks in part to their strategy of vertical integration. They’ve developed most components in-house, with notable exceptions like the Brembo brakes and air suspension, which might give them an edge over competitors relying on a complex web of suppliers.
But what does all this technical jargon mean for you, the potential customer? It’s simple: you want a car that performs well and fits your lifestyle, and Xiaomi is framing its offerings as accessible yet well-engineered products. In a way, they’re channeling the early days of Apple or Tesla — innovative, likeable brands that are gaining traction with a wide audience without outrageous price tags.
Having had the chance to experience the YU7, I wish I’d had more time behind the wheel. Riding as a passenger for two hours gave me a taste of its capabilities, but it was my 45 minutes of driving that truly made the impression. Whether navigating neighborhood streets or tackling winding mountain roads, the YU7 proved to be an impressive contender right out of the gate.
For a newcomer to car manufacturing, the YU7 defies expectations. Many electric vehicles from startups often feel like a rough first draft — cobbled together without the finesse you’d hope for. Yet, the YU7 feels polished and ready for market. With an exhilarating 680 horsepower, propelled by Xiaomi’s in-house V6 electric motors, this car delivers performance that rivals established brands.
Driving the YU7 really brought its strengths to light. Cornering abilities are impressive, thanks to an air suspension system that balances smooth rides with sportier handling. If you’ve ever driven a well-tuned sports car, you’ll recognize that blend of comfort and responsiveness. Comparatively, it rivals some notable competitors such as the Porsche Cayenne — and that’s no small feat.
Now, it’s important to mention the only minor hiccup I encountered: the YU7’s low-rolling resistance tires didn’t offer the grip I hoped for during spirited drives. Thankfully, this is an easy fix with the option for higher-performance Michelins, allowing you to tailor the car’s handling to suit your specific needs.
What’s more, Xiaomi has cleverly utilized its advanced suspension tech for more than just agility — it also smooths out the sometimes-jarring sensations of regenerative braking, ensuring a pleasant driving experience. And if you want to unwind, the YU7 knows how to deliver. With reclining rear seats that some say rival luxury sedans, you can easily sink in and enjoy the ride as the car glides effortlessly down the road.
As I reluctantly handed back the keys to the YU7, I couldn’t help but feel that a little more time with it would have been a real treat. If the SU7 sedan performs anywhere close to this, I can certainly understand why executives at established automakers, like Ford’s Jim Farley, might feel a little anxious about Xiaomi’s entry into the market.
The YU7’s driving capabilities are just part of the overall package, and Xiaomi appears committed to setting itself apart as a premium option without the premium price tag.The SU7 sedan stands as a striking example in the competitive landscape of electric vehicles. When you place it side by side with its counterpart, the YU7, the differences become abundantly clear. While it’s not accurate to label the SU7 as cheap or inferior, there’s a significant leap in luxury and craftsmanship that sets the two apart.
The YU7 offers an oasis of tranquility, featuring double laminated glass that insulates cabin noise to the point where it feels like you’re gliding on a cloud. This level of soundproofing was once exclusive to high-end vehicles but is now a standard in the YU7. The luxurious feel extends to its “zero-gravity” seats, designed for optimum comfort for both driver and passenger. Every control, every switch, feels just right—properly weighted and satisfying to touch. In contrast, stepping into a Tesla Model Y, you might find the materials feeling surprisingly flimsy, a bit jarring given the price point.
When it comes to technology, the YU7 feels leagues ahead. Its software and hardware ecosystems are akin to what you might find in high-end smartphones, emphasizing seamlessness and user-friendliness. Xiaomi, known for its innovative tech products, has made strides not just in cars but in enhancing the driver’s experience with practical add-ons available from their store. Consider this: the YU7 accommodates a variety of accessories, from a GoPro mount to a wireless charging holder, reflecting a thoughtful approach towards modern user needs.
The car’s software is impressively responsive, equipped with a collection of popular Chinese entertainment platforms and navigation tools, including built-in Apple Music and wireless CarPlay—features that still remain scarce in many other Chinese vehicles. The ability to multitask, allowing you to run multiple apps side by side, sets the YU7 apart even further. Imagine using your familiar Apple CarPlay for navigation while simultaneously enjoying Xiaomi’s own navigation and assisted driving features on the same screen. It’s a user-centric design that many would appreciate, even if the menus currently appear in Chinese.
What’s more fascinating is the potential for Xiaomi to extend its reach beyond China. The company has publicly shared their aspirations to export vehicles internationally starting in 2027, although they’ve been coy about which models will make the journey. Regardless, the prospect of expanding into Western markets should send shivers down the spines of legacy automakers.
Before visiting China, I had a basic understanding of Xiaomi’s significance, but seeing it firsthand illuminated its stature among consumers. Whether it’s rooted in national pride or simply the allure of quality products, there’s a palpable affection for the brand within the Chinese populace. Our caravan of grey and green SU7s turned heads on highways and sidewalks alike, creating enough buzz that amateur videos of our journey circulated widely on Chinese social media—a kind of attention reminiscent of tech product launches rather than traditional car unveilings.
This type of enthusiasm is a remarkable asset for Xiaomi, especially as they capture a dedicated fanbase that feels deeply connected to the brand. It comes as no surprise that the SU7 managed to sell out within an hour of reservations opening, reflecting a level of trust and loyalty that few brands can muster.
The ramifications of this development could shake the entire automotive industry, both domestically and internationally. With a built-in fanbase and the agility to innovate swiftly, how can other brands compete? The YU7’s entry into the market adds to a landscape already strained by fierce competition, creating a calculated challenge particularly for established players like Tesla.
While Tesla’s global sales have seen a boost largely thanks to the Chinese market, their performance isn’t what it used to be. Issues surrounding Elon Musk’s public actions and an aging lineup have begun to take a toll, with slow recovery for the Model 3 and a reliance on discounts to keep the Model Y afloat in sales rankings. The enthusiasm for the Model Y appears to be wavering among locals, especially with the YU7 offering a compelling alternative that outclasses it in virtually every way.
If Xiaomi’s vehicles break through to markets beyond China—especially priced competitively against the Model Y—other automakers may have plenty to worry about. With a year-long waitlist still in place for the SU7, it’s clear that there is strong interest in these new models, and the clock is ticking for competitors to respond.
As I navigated through these observations, it became evident that Xiaomi’s ambitious leap into the automotive arena might not just be a phase—it could fundamentally alter the fabric of the EV landscape as we’ve known it.
Image Source: Unsplash
