Xiaomi’s foray into the electric vehicle market has gained momentum, as its YU7 electric SUV outsold Tesla’s Model Y in China during January 2025. The YU7 recorded sales of 37,869 units, outperforming Tesla’s Model Y, which sold 16,845 units, according to the China Passenger Car Association.
This marks a significant shift, as the Model Y, previously the best-selling vehicle in December, fell to the 20th position in January’s rankings. The impact was notable in the new energy vehicle segment, where the Model Y dropped from the top spot to seventh. These statistics were provided by Autohome, an online car sales platform, and cover both electric and gasoline-powered vehicles.
Xiaomi launched the YU7 six months ago, pricing it competitively—10,000 yuan ($1,450) lower than the Model Y in China. The company has positioned the YU7 as superior in several key performance indicators, including driving range on a single charge, in efforts to capture market share from Tesla’s flagship model.
Despite its success in January, it’s important to recognize the cyclical nature of auto sales; the YU7 had briefly outsold the Model Y in October 2024 but did not maintain that lead consistently. In 2024, Tesla ranked fifth in sales among electric vehicle manufacturers in China, while Xiaomi held the tenth position. BYD dominated the market with over 3 million sales last year, followed closely by Geely.
The YU7’s strong performance comes amid a general slowdown in China’s electric vehicle market. Furthermore, Xiaomi’s previous model, the SU7 sedan, faced scrutiny related to safety concerns that prompted regulatory actions in Beijing.
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