Cheaper than Tesla Model Y: Xiaomi YU7 goes on sale in China
Chinese tech giant Xiaomi has officially unveiled its second electric car model - the YU7 crossover. The novelty is cheaper than the main competitor - Tesla Model Y. And it can seriously shake up the electric car market.
Here's What We Know
Xiaomi YU7 is available in three versions - Standard, Pro and Max:
- Xiaomi YU7 Standard - rear-wheel drive (RWD) version priced at 253,500 yuan ($35,300)
- Xiaomi YU7 Pro - all-wheel drive (AWD) version, which is priced from 279,900 yuan ($39,050)
- Xiaomi YU7 Max is the all-wheel drive version with a starting price tag of 329,900 yuan ($46,025)
Thus, the base version of the YU7 is $1,200 cheaper than the Tesla Model Y. The other modifications are also cheaper than the comparable single-engine and twin-engine Model Y in China.
Power reserve figures for the three versions of the Xiaomi YU7. Illustration: Xiaomi
Xiaomi's aggressive pricing policy is in response to Tesla's recent defiant behaviour in China, where the US company has been almost openly taunting Chinese rivals, offering to try and topple it from its leadership position. Xiaomi CEO Lei Jun has taken up the challenge. At the presentation, he said: "Even if we can't beat them, we can compete, right?"
Xiaomi YU7 body proportions. Illustration: Xiaomi
In the first three minutes after pre-orders opened, more than 200,000 people put down a $700 deposit to book a YU7 order. Buyers have seven days to change their mind, after which the reservation turns into a confirmed order. Next, another $2,800 deposit will need to be made for a YU7 reservation.
Xiaomi YU7 panoramic glass roof. Illustration: Xiaomi
To make the offer even more attractive, Xiaomi has added a bunch of free options to the top-end version. Buyers get an electrically operated front boot lid ($278), "weightlessness effect" seats for driver and passenger ($1,250), Nappa leather ($1,115), a large HEPA filter ($140), a Level 2 autonomous driver assistance system ($3,600), and carbon fibre sill plates and mirror housings ($1,300).
The promotion is limited, but Xiaomi hasn't said how long it will last.
Xiaomi YU7 body colour options. Illustration: Xiaomi
The waiting list promises to be long, and it could get even longer. The Xiaomi CEO said that reservation holders for the SU7 sedan can transfer their reservations to the YU7 for free within the next three days.
Second row seats with adjustable backrest angle. Photo: Xiaomi
Xiaomi plans to start exporting the YU7 by 2027, but has not yet announced which models will go to overseas markets. If the company manages to offer Tesla-level pricing or lower in global markets outside of China, traditional automakers will have a tough time.
