Xiaomi Expands EV Lineup, Targets Tesla's Model Y

Xiaomi Expands EV Lineup, Targets Tesla's Model Y

Wenjun Li
3 min read

Xiaomi to Launch New Electric Compact SUV to Rival Tesla Model Y

Xiaomi, a major Chinese technology company, is gearing up to introduce a new compact crossover in its electric vehicle (EV) range, directly competing with Tesla's Model Y. This strategic move follows the remarkable success of Xiaomi's initial offering, the SU7 Sedan, which garnered an astounding 50,000 orders within its first 27 minutes of availability in China. Bearing this in mind, the company has set a target to deliver 100,000 cars by the year's end and is ramping up production for the SU7 Sedan to meet the escalating consumer demand. Notably, the forthcoming SUV, anticipated to debut in 2025, will be manufactured at an enhanced assembly line with a capacity of 300,000 units annually, indicating Xiaomi's significant ambitions within the Chinese EV market.

Key Takeaways

  • Xiaomi is set to fortify its EV portfolio with the introduction of a compact crossover, directly targeting the Tesla Model Y.
  • The SU7 Sedan achieved a staggering 50,000 orders within a mere 27 minutes, with 10,000 units assembled within the initial 32 days of production.
  • The achievement of the SU7 Sedan can be attributed to its remarkable 16.1-inch 3K central console, a 56-inch head-up display, and an AI-powered infotainment system.
  • Xiaomi is scaling up the production of the SU7 Sedan to meet the escalating demand and is concurrently developing a new compact SUV geared towards the popular SUV segment in China.
  • The anticipated SUV is poised to be a direct competitor to Tesla's Model Y, with expectations of an equivalent or enhanced infotainment system.
  • Xiaomi's substantial $10 billion EV investment, spearheaded by co-founder Lei Jun, will be bolstered by the introduction of the new SUV model.


Xiaomi's ambitious expansion into the EV market, specifically with the launch of a new compact crossover aimed at Tesla's Model Y, is likely to intensify the competition within China's burgeoning electric vehicle sector. This strategic move is underpinned by the resounding success of Xiaomi's SU7 Sedan, which garnered an exceptional 50,000 orders in its inaugural 27 minutes, evidencing compelling consumer demand for their technology-integrated vehicles. The imminent SUV, slated for a 2025 release, will benefit from a substantial $10 billion investment led by co-founder Lei Jun and an upgraded assembly line with the capability to produce 300,000 units annually.

This development carries implications for potential shifts in market share from Tesla and other Chinese EV manufacturers such as Nio and BYD. Additionally, countries involved in Xiaomi's supply chain, including Taiwan for semiconductors and South Korea for displays, may witness heightened orders. In the long term, this strategic move has the potential to cement Xiaomi's position in the competitive EV landscape, placing pressure on other tech giants like Huawei and Apple to follow suit. However, the success of Xiaomi’s endeavor hinges on surmounting production challenges and sustaining consumer demand for their innovative infotainment systems.

Did You Know?

  • Electric Vehicle (EV) Offerings: Xiaomi, a Chinese tech giant, is expanding its presence in the electric vehicle market with the launch of a new compact crossover, following the triumph of the SU7 Sedan within their EV lineup. The term "EV offerings" pertains to vehicles that are powered entirely or partially by electricity, differing from traditional gasoline or diesel vehicles.
  • Central Console and Head-Up Display: The triumph of the SU7 Sedan can be attributed to several features, including the extraordinary 16.1-inch 3K central console and a 56-inch head-up display. The central console serves as the control panel positioned between the front seats of the vehicle, frequently housing functions such as climate control, the infotainment system, and other controls. On the other hand, a head-up display (HUD) is a transparent display that presents information without necessitating the users to divert their attention from their typical viewpoint. In a vehicle, this often displays information such as speed and navigation directly within the driver's line of sight.
  • Infotainment System: Xiaomi's SU7 Sedan boasts an AI-powered infotainment system, and the impending compact SUV is anticipated to feature a comparable or enhanced system. An infotainment system represents a convergence of automotive computing systems and entertainment systems, offering functionalities such as navigation, audio, video, and integration with smartphones. In the case of Xiaomi, the system harnesses AI technologies to enhance user interaction, personalization, and features.

You May Also Like

This article is submitted by our user under the News Submission Rules and Guidelines. The cover photo is computer generated art for illustrative purposes only; not indicative of factual content. If you believe this article infringes upon copyright rights, please do not hesitate to report it by sending an email to us. Your vigilance and cooperation are invaluable in helping us maintain a respectful and legally compliant community.

Subscribe to our Newsletter

Get the latest in enterprise business and tech with exclusive peeks at our new offerings