26 Jun 2025, 09:38 PM IST Lei Jun, Chairman and CEO of Chinese electronics company Xiaomi, introduces the Xiaomi YU7 car, during a launching event in Beijing on June 26, 2025. (Photo by WANG Zhao / AFP)(AFP) Chinese tech giant Xiaomi has launched its latest electric vehicle, the YU7 SUV, marking a bold move into the fiercely competitive EV market. Priced at 253,500 yuan (approximately $35,360), the new model is aimed squarely at Tesla’s best-selling Model Y, continuing founder Lei Jun’s strategy of challenging global rivals head-on. The YU7 made its debut on Thursday during a high-profile launch event in Beijing, where Lei openly compared the vehicle to the Tesla Model Y, a tactic reminiscent of his past product unveilings where Xiaomi smartphones were stacked up against Apple’s iPhones. The SUV’s pricing aligns closely with industry forecasts and undercuts the Model Y’s starting price of 263,500 yuan. This strategic pricing also places it between key domestic competitors, such as BYD’s Tang L SUV, which retails between 239,800 yuan and 289,800 yuan. The YU7, slightly larger in build, is designed to appeal to tech-savvy Chinese consumers who value both performance and advanced in-car features. Xiaomi is betting big on its automotive ambitions. Having already invested heavily in areas like chip development and augmented reality wearables, the company is now aiming to become a global leader in smart mobility. Lei has pledged a staggering 200 billion yuan over five years to support this transition. Initial consumer response has been robust. Pre-orders opened on Thursday with a 5,000 yuan deposit, and Xiaomi reported more than 200,000 bookings within just three minutes. In an unusual offer, customers who previously ordered the SU7 sedan, Xiaomi’s first electric car, are being given a three-day window to switch to the YU7 if delivery has not yet been completed. Top-end variants of the YU7 offer 760 kilometres of range on a single charge and can accelerate from 0 to 100 km/h in just 3.23 seconds. All models come equipped with lidar sensors for enhanced driver assistance, as well as an 800V charging architecture for faster top-ups. Features tailored for Chinese buyers include expansive touchscreens, massage seats, and practical additions like built-in drawers. Despite recent challenges, including regulatory scrutiny following a fatal crash involving the SU7, Lei struck a confident tone at the unveiling. “We are confronting our biggest competitor and intense competition from all sides, but I have absolute confidence in our path forward,” he said.