Chinese tech giant Xiaomi, known for its smartphones, has recently entered the electric vehicle market, targeting Tesla's best-selling model in China. Xiaomi unveiled the YU7 SUV, boasting a single-charge range of at least 760 kilometers (472 miles), surpassing the Tesla Model Y Long Range's 719 kilometers. Range is a crucial factor for consumers concerned about frequent charging.
Citi analyst Jeff Chung predicts the YU7 will significantly impact Tesla's (TSLA) market share in China. The YU7 is expected to be priced between 250,000 to 320,000 RMB (approximately $34,700 to $44,420), with anticipated monthly sales of around 30,000 units. Xiaomi plans to announce the final price when the YU7 officially launches in July.
According to data from AutoHome, Tesla's Model Y was the second best-selling new energy vehicle in China over the past six months, trailing behind BYD's Seagull, with Wuling Hongguang Mini in third. In April, Geely's Geome Xingyuan led the sales, followed by BYD Seagull, Wuling Hongguang Mini, and Xiaomi's SU7 sedan. Tesla's Model Y ranked eighth.
Elinor Leung from CLSA suggests the YU7, positioned as a "luxury SUV," may outperform Xiaomi's SU7 sedan. Despite Tesla reducing the Model 3's price to 235,500 RMB, it remains higher than the SU7's 215,900 RMB.
