CHINESE FIRM’S NEW EV RIVALS TESLA MODEL Y WITH 480-MILE RANGE, 96 KWH BATTERY

The Chinese Ministry of Industry and Information Technology (MIIT) has revealed that tech giant Xiaomi’s new electric crossover SUV, the YU7, will offer a driving range of up to 478 miles (770 kms) and a 96.3kWh battery pack. Set to be launched this summer, the YU7 will compete against Tesla’s Model Y.

The vehicle, which would combine features of a traditional crossover SUV with a battery-powered drivetrain, also comes in a shorter driving range of approximately 419 miles and 472 miles. It is among the newly added models to enjoy purchase tax breaks, according to a notice by the ministry.

Xiaomi entered the EV market in March last year with the launch of the SU7. The electric sedan was made available in three variants — Standard, Pro, and Max — with starting prices of $29,720, $33,660, and $41,170, respectively. Deliveries of the Standard and Max versions of the SU7 began in April 2024, while deliveries of the SU7 Pro started in May.

SU7-inspired design elements

Xiaomi’s new vehicle retains the brand’s signature automotive design language, featuring a sporty crossover SUV silhouette. It incorporates a low-drag design similar to the Xiaomi SU7, with semi-concealed door handles, frameless exterior rearview mirrors, five-spoke wheels, and yellow brake calipers, all reflecting the SU7’s design lineage.

Selected versions of the YU7 feature a roof-mounted LiDAR sensor, indicating that purely vision-based autonomous driving solutions may be available in the future. Additionally, the vehicle is all-electric, available in single or dual-motor configurations. The dual-motor all-wheel-drive version delivers 220kW in the front and 288kW in the rear, adding to 508kW (691 hp) and yielding a top speed of 253 km/h, powered by ternary lithium batteries.

The lower-powered all-wheel-drive model features front and rear motors producing 130kW and 235kW, for a total output of 365kW. The single-motor rear-wheel-drive version generates 235kW, reaches a top speed of 240 km/h, and is powered by a lithium iron phosphate battery. Ternary batteries generally offer higher energy density than LFP batteries, but dual-motor models tend to consume more energy than single-motor versions.

YU7 to challenge Tesla’s Model Y

Xiaomi’s bold move into the electric SUV market puts it in direct competition with Tesla, whose Model Y recently received updates. Tesla began delivering the refreshed Model Y in late February with improved range—the long-range version now offers approximately 447 miles per charge (up from 428 miles), while the rear-wheel-drive model reaches about 369 miles (previously 344 miles).

Xiaomi entered the EV market at a time when Tesla’s popularity in China saw an 11% year-over-year decline. With plans to offer fully integrated OS experiences between its EVs and smartphones, Xiaomi may challenge Tesla in the Chinese market.

The latest YU7 milestone strengthens Xiaomi’s position in the high-performance electric vehicle market, following extensive testing and development, as it looks to continue exploring innovations in pure electric technology.

Furthermore, Xiaomi’s shares have surged approximately 340% from a February 2024 low, adding more than $10 billion to its market value. The company gained investor confidence by replicating its smartphone success in China’s electric vehicle market, and now it needs to prove that its share performance is warranted, amidst market caution.

2025-03-15T12:20:21Z