Chinese smartphone company Xiaomi has launched an electric SUV, the YU7, in the summer of 2025, aiming directly at Tesla’s Model Y.
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Beijing — xiaomielectric car venture has succeeded in dethroning the tesla At least in January in China.
According to data from the China Passenger Vehicle Association, the Xiaomi YU7 SUV ranked first in China’s sales last month, with 37,869 units sold, twice as many as Tesla’s Model Y vehicles, which sold 16,845 units.
The Model Y, which was the best-selling model in December, dropped to 20th place in January. New energy vehicles also fell from 1st to 7th place during the same period.
The figures, which include both electric and gasoline vehicles, were announced late Thursday by online car sales platform Autohome.
Xiaomi began selling its second electric car model, the YU7, in the summer of 2025, about six months ago.
The Chinese company, best known for its smartphones, didn’t shy away from its goal of competing with Tesla. Xiaomi launched the car in China at a starting price of 10,000 yuan ($1,450) cheaper than the Model Y. The company claimed that this model outperformed Tesla in key metrics such as range on a single battery charge.
Analysts predicted last year that the YU7 would take market share from the Model Y, Tesla’s best-selling vehicle in China. In December, the Model Y topped the list in monthly sales. BYDAffordable Qin Plus cars. Third place goes to Xiaomi’s YU7.
Monthly sales may vary. In October, the YU7 surpassed the Model Y, but the Xiaomi car did not take first place. Tesla has consistently had strong sales.
Excluding gasoline-powered cars, Tesla ranked fifth in terms of sales in China last year, while Xiaomi ranked 10th. According to data from the China Passenger Car Association, BYD led China’s car market in 2025 with sales of more than 3 million vehicles, followed by Geely with 2.6 million vehicles.
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The YU7’s strong sales in January came despite a slowdown in China’s overall electric vehicle market in recent months.
Xiaomi’s earlier SU7 sedan has also come under intense scrutiny following fatal crashes involving driver assistance features and electric door handles. Since then, the Chinese government has banned hidden door handles and automakers have started installing exterior lights to indicate when driver assistance is in use.
Like most Chinese electric car companies, Xiaomi also plans to expand overseas, including to Europe, next year.
