On Thursday, Chinese EV and smartphone giant Xiaomi priced its newly launched electric SUV, the YU7, at 10,000 yuan ($1,395) less than Tesla’s Model Y, intensifying its challenge to the American automaker in the world’s largest automotive market.
The YU7’s base variant is priced at 253,500 yuan ($35,364), while the higher-end YU7 Pro and YU7 Max models are listed at 279,900 yuan and 329,900 yuan, respectively. Xiaomi will begin accepting orders for all three versions starting Thursday night.
The launch intensifies competition in China’s booming EV market, where the Model Y was the best-selling SUV in May, retailing from ¥2,63,500. Xiaomi CEO and founder Lei Jun has positioned the YU7 as a direct competitor to the Model Y, and analysts believe it has strong potential to challenge Tesla’s market leadership.
Boasting a driving range of up to 835 km (519 miles) per charge, the YU7 also outpaces Tesla’s latest Model Y, which offers up to 719 km. The new SUV also faces competition from other domestic players, including Zeekr’s 7X and Li Auto’s L6.
