Xiaomi’s YU7 SUV Launch: A Record-Breaking Debut
File photo: Xiaomi founder Lei Jun shows the Xiaomi YU7 at a launch event held in Beijing (Picture credit: AP)
Xiaomi’s New Electric SUV Receives Overwhelming Response
Xiaomi, a big name in tech, has made a splash in the electric vehicle (EV) market. Their new electric SUV, the YU7, got a whopping 289,000 pre-orders in just one hour. This amazing response sent Xiaomi’s stock prices soaring to a record high.
Unprecedented Customer Interest
Xiaomi’s CEO, Lei Jun, was amazed by the customer interest. He said, “In just two minutes, we received 196,000 paid pre-orders and 128,000 lock-in orders. We may be witnessing a miracle in China’s automotive industry.”
Competitive Pricing and Features
The YU7 is a five-seater electric SUV. It starts at 253,500 yuan (around $35,360). This price is nearly 4% below Tesla’s Model Y in China. The YU7 offers:
- A range of up to 760 kilometers on a single charge
- Apple CarPlay and Apple Music support
- AI-enhanced driver-assist capabilities powered by Nvidia’s Thor chip
These features have fueled the rapid pre-sale demand. The YU7’s early orders surpassed market expectations of 100,000. They were more than triple the initial response to Xiaomi’s debut sedan, the SU7, launched last year.
Market Impact and Future Deliveries
Analysts at Jefferies noted that the YU7 offers much better specs and performance than Tesla’s Model Y. Citi analysts warned that Tesla may need to offer more incentives or cut prices to keep up with Xiaomi’s momentum.
The launch was originally planned for July but was moved up. This was possibly to take advantage of strong market momentum and an intensifying EV price war in China. The vehicle will begin deliveries within one to five weeks.
Xiaomi’s Expansion Beyond Cars
Beyond cars, Xiaomi also launched AI-enabled smart glasses. These glasses can:
- Take photos
- Scan QR codes for payments
- Perform real-time translations
Priced at 1,999 yuan ($279), the glasses are currently available only in China. They position Xiaomi against Meta’s Ray-Ban smart offerings.
Economic Context and Future Outlook
The launch comes at a critical time for China’s economy. Premier Li Qiang highlighted EVs as a cornerstone of Beijing’s push to become a “major consumption powerhouse.” The Xiaomi launch aligns with that strategy, helping drive demand for high-value, tech-forward products.
Following the overwhelming reception, Xiaomi’s stock jumped 8% in early trade before ending 3% higher. Its market capitalisation has now surpassed $200 billion, making it the best-performing large-cap stock in the Asia-Pacific region this year.
