Chinese smartphone company Xiaomi has launched its luxury SUV, the YU7, with a starting price of 253,500 yuan ($35,322), undercutting rival Tesla’s Model Y by 10,000 yuan. CEO Lei Jun announced the pricing on Thursday, touting the vehicle’s competitive features.
Xiaomi had forecasted monthly sales of around 30,000 units and annual sales of 300,000 to 360,000 units for the YU7. The company claims its SUV has a range of metrics beating Tesla’s Model Y, but still falls short on driver assist technology.
The YU7 features advanced driver-assist software powered by Nvidia’s Thor chip, as well as Apple Car Play and Apple Music integration. It also boasts a driving range of at least 760 kilometers (472 miles) per charge, surpassing Tesla’s extended-range Model Y.
In addition to the SUV, Xiaomi launched its AI glasses, starting at 1,999 yuan ($279), which offer features like changing lens tint, QR code scanning for payments, and interactive AI capabilities. The company has no plans to sell the glasses overseas, unlike Meta’s Ray Bans smart offering.
Pre-orders for the YU7 began on Thursday evening, with deliveries expected within one to five weeks. Xiaomi has already received over 200,000 orders in just three minutes after pre-sales launched.
Source: https://www.cnbc.com/2025/06/26/chinas-xiaomi-undercuts-tesla-with-yet-another-cheaper-car.html