Gasgoo Munich- When it launched last June, the YU7 secured 240,000 orders in just 18 hours, setting the auto industry ablaze. Yet in the real-world race against Tesla’s Model Y, the YU7 remains the underdog.
"Eight losses, two wins."
On the evening of May 21, Xiaomi founder Lei Jun took the stage to reveal the YU7’s head-to-head track record against the Model Y over the past year. In direct competition over the last 10 months, the YU7 has won twice and lost eight times. By April, cumulative deliveries of the Xiaomi YU7 surpassed 230,000 units.
This January, the YU7 briefly claimed the top spot for SUV sales in China—sweeping all categories regardless of powertrain, price range, or class. But the Model Y soon reclaimed its lead.
"There is no shame in losing to the global sales champion," Lei Jun told the audience. "As long as we never give up."
Across the broader new-energy SUV market, the Xiaomi YU7 has turned in a commendable performance, building significant sales volume. The pressing question now is how to survive—and stay at the top—in the price band long dominated by the Model Y.
Phones, Watches, Cars: The Foundation of the Ecosystem
For the first half of the event, the spotlight remained on smartphones and smart wearables.
Priced from 4,799 yuan (or 4,299 yuan after government subsidies), the Xiaomi 17 Max features a 6.9-inch 2K flagship flat screen, a debut 200-megapixel Leica main camera, the Snapdragon 8 Ultimate Edition chip, and an 8,000 mAh Jinsha River battery. Lei Jun also warned that memory chip prices will continue rising over the next two years, making phones more expensive—advising those planning an upgrade to act now.
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The company’s first clip-on earbuds are priced at 849 yuan, or 799 yuan during the initial launch period. Weighing 5.5 grams per ear, they feature a biomimetic curve design and memory titanium wire, offer IP57 dust and water resistance, and last 9 hours on a charge—extending to 38 hours with the case.
A directional sound structure paired with reverse-wave anti-leakage technology addresses the common issue of sound leakage in open-ear designs. With "Xiao Ai Companion Mode" enabled, the earbuds can recommend playlists while running, find nearby restaurants, and are compatible with Apple devices.
The Xiaomi Band 10 Pro starts at 399 yuan for the standard version, with a ceramic special edition at 479 yuan. It adds HRV (Heart Rate Variability) sleep monitoring to assess physical fatigue and recovery status. The body has been slimmed to 9.7 millimeters and weighs 21.6 grams, using an aerospace aluminum body and a micro-curved screen. It supports over 150 sports modes, boasts 21 days of battery life, and works with the Apple ecosystem.
In game mode, the band displays respawn countdowns and vibrates to alert the wearer, while also monitoring heart rate and emotional index to generate match reports.
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Viewed individually, these products follow the familiar Xiaomi playbook: high specs, rapid iteration, and strong value. But within the context of the full presentation, they connect directly to the automotive business.
For years, Xiaomi has been focused on one goal: integrating phones, wearables, home devices, and cars into a single system. Syncing phones with infotainment systems, linking watches to vehicles, and automating home appliances upon arrival are common industry features. The real challenge lies in making them work together seamlessly.
Many traditional automakers approach intelligence by perfecting the car first, then extending into phones and smart homes. Xiaomi has done the reverse. With an existing ecosystem of phones, tablets, TVs, smart home devices, and IoT, the car is simply the new terminal joining the network.
The advantage of this path is lower user migration costs. For those already using Xiaomi phones, bands, and smart home devices, switching to a Xiaomi car doesn't mean adapting to a new system.
Xiaomi is replicating and integrating its smartphone manufacturing prowess into automotive electronics production. Its new smart manufacturing base in Beijing's Changping District, with a total investment of 2.4 billion yuan, began operations in 2024. The facility has laid out automotive electronics operations with dedicated production lines. The high-precision manufacturing, standardized production, and supply chain management capabilities honed in consumer electronics are now being repurposed for automotive parts.
Many "new forces" are essentially internet companies crossing over into carmaking. Xiaomi, by contrast, is a mature consumer electronics giant entering the auto industry. That distinction sets it apart from numerous new-energy brands.
YU7 GT: Entering the High-Performance Market
The second half of the event focused on two new additions to the YU7 family: an upgraded standard version and the all-new performance flagship, the YU7 GT.
Relaunching the standard YU7 is a correction to the product lineup and strategy following its battle with the Model Y. Lei Jun admitted that canceling the standard version last year was a mistake. The YU7’s lackluster performance against the Model Y stemmed from a mismatch in product positioning. Xiaomi had pitted a high-cost, long-range version against the Model Y’s volume-driving entry-level model—fighting in a different weight class.
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Research shows that over 70% of Model Y owners choose the 593-kilometer entry-level version. For most urban users, the real need is "sufficient range at a reasonable price," not blindly chasing maximum range. Xiaomi previously simplified its lineup from four models to three, abandoning the entry-level price band that drives volume, which put it at a distinct competitive disadvantage.
Against this backdrop, restoring the standard version is essentially a return to head-to-head competition. By pitting a 233,500-yuan standard version against the Model Y entry-level model—matching "standard against standard, long-range against long-range"—Xiaomi is filling the price gap and regaining the basic conditions for a direct confrontation.
The standard YU7 is competitive in its own right: it features a 73-kWh LFP battery, a 752V silicon carbide high-voltage platform, 643 kilometers of CLTC range, and can add 405 kilometers of range in 15 minutes. Crucially, it retains the lidar and the 700 TOPS Thor chip.
Furthermore, Xiaomi has pushed down high-value features. During the initial sales period, buyers get free Nappa leather seats, an electric front trunk, a HEPA filter, a rear control screen, and CDC continuous damping variable shock absorbers, plus a 3,000-yuan paint voucher. "Don't pressure our staff for five-year interest-free financing," Lei Jun emphasized at the event. "We've just cut the price directly from the sticker."
With the return of the standard version, the YU7 family matrix is more complete. It is no longer blindly stacking specs, features, and range, but standing firmly on the side of what users actually need.
For Xiaomi, this marks a strategic pivot: shifting from emphasizing "what we can achieve" to understanding "what users truly need." In today's new-energy market, specifications alone rarely decide the winner; product definition capability is becoming paramount.
On the other flank, Xiaomi hasn't given up on breaking into the high-end market. Hence, the arrival of the YU7 GT.
In terms of naming, "Ultra" represents extreme performance—a spot already claimed by the SU7 Ultra. "GT," derived from Gran Turismo, emphasizes the balance between high performance and long-distance comfort.
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The YU7 GT is powered by an in-house V8s EVO motor with a top speed of 28,000 rpm. Its proprietary silicon carbide power module boosts effective current to 800A, increasing power by 5.9%, while ultra-thin 0.15mm rotor silicon steel sheets push motor efficiency to 98.38%. The dual-motor setup delivers a combined maximum output of 1,003 horsepower, accelerating from 0 to 100 km/h in 2.92 seconds, with a top speed of 300 km/h.
On the battery front, the YU7 GT uses a 101.7 kWh ternary lithium battery and an 897V ultra-high-voltage platform, supporting 5.2C charging rates for a CLTC comprehensive range of 705 kilometers. A new intelligent disengagement mechanism allows the front motor to decouple, turning the vehicle into a rear-drive unit and adding an extra 20 kilometers of range.
More critical than raw specs is the chassis. The car features the "Jiaolong Master" chassis, equipped with dual-valve CDC dampers that control compression and rebound damping independently. A closed-loop dual-chamber air suspension offers 75 mm of adjustment across five levels, while an eLSD electronic limited-slip differential rapidly distributes power during high-speed cornering or single-wheel slippage.
The braking system shares its DNA with the SU7 Ultra: Akebono six-piston front calipers paired with carbon-ceramic rotors deliver a braking distance of 32.9 meters from 100 km/h, capable of ten consecutive stops from 180 km/h with no fade.
It is clear that the YU7 GT aims to enter the high-performance luxury SUV segment long dominated by European brands. While the new-energy industry has emphasized "software-defined vehicles" in recent years, chassis tuning, mechanical engineering, and aerodynamics remain unavoidable hurdles in the high-performance realm.
Image Source: Xiaomi EV
To build a true performance car, Xiaomi recruited people who have actually built performance cars, developing this vehicle the way a performance car should be built. The YU7 GT is the first product involving Xiaomi's European R&D center. The team includes the former technical director of BMW's M division, a powertrain head with nearly 30 years at BMW and 20 years of Nürburgring testing experience, and engineers with F1 backgrounds who previously worked on the Model Y's aerodynamics.
To prove the YU7 GT’s mettle, Xiaomi took it to the Nürburgring. The new car set a best lap time of 7 minutes and 22.755 seconds—14 seconds faster than the previous record-holding SUV. Lei Jun noted that this is an officially certified production car time achieved with the track package installed.
For foreign luxury high-performance SUVs, the challenge from the YU7 GT also lies in its price. The YU7 GT starts at 389,900 yuan. With benefits totaling 85,000 yuan during the initial sales period, the fully equipped price dips to 429,900 yuan.
Hard Battles Ahead
By bringing back the standard version and launching the GT, Xiaomi has not only completed the YU7 family matrix but also clarified the market positioning of each product. The standard version targets mainstream entry-level users, while the GT version aims at the high-end performance market.
This product strategy should help the brand meet its annual delivery targets. After all, the pressure is mounting to reach the goal of 550,000 units this year. The Xiaomi YU7 also needs these refreshed and new versions to return to its sales peak.
The 550,000-unit target was set by Xiaomi EV at the start of the year. In 2025, the company delivered 410,000 units, leading to optimism for this year. However, cumulative deliveries for the first four months of this year reached only about 109,000 units—a 20% completion rate. This means Xiaomi must maintain an average delivery pace of 55,000 units per month over the remaining eight months. For Xiaomi today, hitting the 550,000 annual sales target is not just a test of product strength, but a trial of its overall system capabilities.
Xiaomi EV
The capital-intensive nature of the auto industry contrasts sharply with the consumer electronics logic Xiaomi knows well. Smartphones can rely on online channels for rapid distribution and short-cycle iterations to boost volume. But the automotive industry depends heavily on the coordinated operation of factory capacity, logistics, physical stores, delivery processes, and after-sales networks. A weak link in any of these directly limits the overall delivery ceiling.
For this reason, Xiaomi is comprehensively addressing system weaknesses across three dimensions—product, brand, and channel—to pave the way for volume scaling.
On the brand front, Xiaomi is expanding the boundaries of its product matrix. According to multiple sources and trademark registration information, Xiaomi is advancing a new independent sub-brand called "SKYNOMAD." The first model, internally codenamed "Kunlun N3," is positioned as an extended-range full-size SUV. It is planned for launch in the second half of 2026 and will feature an independent brand logo.
If so, Xiaomi will form a dual-brand strategy: the main brand will cultivate the pure-electric and high-performance markets, while the sub-brand will target the extended-range family segment, covering broader price bands and user groups in both directions.
Continuous expansion on the channel front is laying a solid foundation for large-scale delivery. By the end of April this year, Xiaomi EV had 495 stores and 286 service outlets nationwide, covering 165 cities. A complete system for sales, delivery, and after-sales is taking shape, supporting the subsequent high-intensity, large-volume deliveries.
Beyond filling system gaps, Xiaomi must face the brutal reality of the auto industry. Car making has never been easy. As XPENG Chairman He Xiaopeng famously quipped: "If you want to ruin a friend, convince him to build cars."
As a latecomer to the EV race, Lei Jun is well aware of the immense pressure and difficulty, yet he entered the fray without hesitation. Now that Xiaomi has passed the "zero to one" startup phase, the climb from one to N—the scaling phase—is the real battle that will test its system strength.
A major immediate challenge for Xiaomi is speeding up delivery efficiency. Orders are not the issue right now; the bottleneck is the delivery pace. To ensure the rollout of the new YU7 family, Xiaomi has further optimized the pickup process. For users who order before May 31, some current models can be picked up in as little as two hours. However, as a flagship model, production ramp-up for the YU7 GT is difficult initially, capped at just 2,400 units per month. If orders surge, wait times could extend.
Image Source: Xiaomi EV
When Lei Jun announced the YU7 family prices, gasps of surprise rippled through the audience, with industry insiders expressing optimism.
Riding the wave of buzz from its launch last June, the new YU7 is likely to see a strong start if it maintains market momentum and keeps boosting delivery efficiency. Combined with the incremental contribution from the "SKYNOMAD" brand in the second half, Xiaomi’s massive phone user base, and its mature brand influence, hitting the 550,000-unit annual target might not be so difficult after all.
Beyond that, Xiaomi is already paving the way for even higher sales targets. Going global is on the agenda. According to multiple sources, Xiaomi plans to enter the European market in 2027, with Germany as the first stop. The Munich European R&D Center, operational for over a year, not only participated deeply in the YU7 GT's development but is also advancing European local certification, product adaptation, and brand groundwork.
Compared to other EV startups, Xiaomi has distinct advantages in going overseas. Thanks to over a decade of consumer electronics deployment, Xiaomi has established mature offline channels and brand recognition in Europe, Southeast Asia, and the Middle East. European users are no strangers to the brand. The strong reputation built by its phone business is expected to lower the costs of channel education and brand cold-start for its automotive expansion.
Image Source: Xiaomi EV
Xiaomi’s assault on the Nürburgring is also about generating buzz for its global expansion. Xiaomi EV CTO Hu Zhengnan stated: "Xiaomi’s goal is to enter the global market. We must compete with the world’s top companies on the same stage, using a language everyone understands."
Of course, the challenges of the European market cannot be ignored. A tight preparation schedule brings significant time pressure, leaving a limited window for product certification, localization, and channel establishment. Furthermore, competitive pressure is intense. Brands like BYD, MG, and Tesla have already secured their positions in Europe.
At the same time, European consumers have extremely high standards for design originality and industrial heritage, with demands for product details that differ from those in China. Additionally, structural differences in charging infrastructure, environmental regulations, data security standards, and consumption habits will require time and effort from Xiaomi to adapt and refine.
Summary: The new-energy vehicle track has bid farewell to the era of breaking through on a single hit product; it has entered an era of all-dimensional system competition. For automakers to stay at the table, they must compete on comprehensive strength—product, capacity, channel, service, and brand. Facing the interim score of "eight losses, two wins" against the Model Y, Xiaomi has not stood pat but has quickly corrected errors and made comprehensive adjustments.
By completing the price matrix, deepening system capabilities, and opening up overseas growth, Xiaomi is fighting not a short-term skirmish, but a long-term war of attrition. The new round of market battles for Xiaomi EV has only just begun.
