Chinese smartphone company Xiaomi launched its YU7 electric SUV in summer 2025, taking direct aim at Tesla’s Model Y.
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BEIJING — XiaomiThe electric car company managed to dethrone Tesla in China, at least in January.
The Xiaomi YU7 SUV ranked first in China in terms of sales last month, with 37,869 units sold, twice as many as Tesla’s 16,845 Model Y vehicles, according to data from the China Passenger Car Association.
The Model Y, which was the best-selling model in December, plunged to 20th place in January. Among new energy vehicles, it also rose from first to seventh place during the same period.
The figures include both electric and gasoline vehicles and were published Thursday evening by online car sales platform Autohome.
Xiaomi I started selling the YU7its second electric car model, about six months ago, in the summer of 2025.
The Chinese company, best known for its smartphones, did not hesitate to want to attack Tesla. Xiaomi launched the car at a starting price 10,000 yuan ($1,450) lower than the Model Y in China. The company claimed the model beat Tesla on key metrics such as driving range on a single battery charge.
Last year, analysts predicted that the YU7 would take market share from the Model Y, Tesla’s best-selling car in China. In December, the Model Y ranked first in monthly sales, ahead of BYDThe Qin Plus car at a low price of . Xiaomi’s YU7 ranked third.
Monthly sales figures can be volatile. Even though the YU7 sold more than the Model Y in October, the Xiaomi car did not rank first. Until now, Tesla has always been stronger in terms of sales.
Excluding gasoline cars, Tesla ranked fifth in sales in China last year, while Xiaomi ranked tenth. For all of 2025, BYD dominated China’s auto market with more than 3 million vehicles sold, followed by Geely with 2.6 million, according to data from the China Passenger Car Association.
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Strong sales of the YU7 in January occurred despite a global slowdown in the Chinese electric car market in recent months.
Xiaomi’s previous SU7 sedan also came under scrutiny following fatal accidents involving driver assistance features and power door handles. Beijing has since banned hidden door handles, while automakers have started installing external lights that indicate when driver assistance is in use.
Like most Chinese electric car manufacturers, Xiaomi also plans to expand overseas, including Europe next year.