Xiaomi Overtakes Tesla in China’s Electric Vehicle Market with YU7 SUV

TLDR

• Xiaomi’s YU7 SUV outsold Tesla’s Model Y in January with 37,869 units sold.
• The YU7’s competitive pricing and extended driving range give it an edge over Tesla.
• Tesla’s Model Y saw a significant drop in January, falling to 20th place in sales.
• Xiaomi aims to expand its electric vehicle offerings internationally, including in Europe by 2026.
• Xiaomi’s strong performance came despite a general slowdown in China’s electric car market.

Xiaomi has surpassed Tesla in electric vehicle sales in China in January. The Xiaomi YU7 SUV achieved strong sales, making it the top-selling electric car model in the country and placing Tesla behind in the rankings.

Xiaomi launched the YU7 as its second electric car model in the summer of 2025. It has quickly gained traction in the competitive electric vehicle market. The company strategically priced the YU7 at 10,000 yuan below Tesla’s Model Y, claiming its car outperforms Tesla’s in key areas, including driving range on a single charge.

Xiaomi’s YU7 SUV Leads in January

According to CNBC, the YU7 secured first place in China’s electric car sales in January. With 37,869 units sold, it nearly doubled Tesla’s sales of the Model Y, which sold 16,845 units.

This achievement marks a shift in the dynamics of China’s electric vehicle market, where Tesla had previously dominated. Xiaomi’s aggressive pricing strategy, offering the YU7 at a starting price lower than the Model Y, may have contributed to its success.

The car’s longer driving range on a single charge also gives it an edge over Tesla in this competitive segment. As a result, the YU7 has drawn attention as a strong contender in the market.

Tesla’s Model Y Drops in January Rankings

Tesla’s Model Y, which was the best-selling electric vehicle in China in December, experienced a dramatic fall in January. It dropped to 20th place in sales, behind several other models, including Xiaomi’s YU7.

The Model Y also slipped from first place in the new energy vehicle category to seventh place. This shift in rankings highlights the volatility of the electric car market, especially with new entrants like Xiaomi gaining ground

Despite its strong performance in previous months, Tesla’s position in China has weakened as local competitors expand. However, monthly sales figures are often subject to fluctuation, and Tesla remains a major player in the industry.

Xiaomi’s Growth Despite Market Slowdown

Xiaomi’s strong performance in January came amid an overall slowdown in China’s electric car market. While many companies have seen their sales figures drop, Xiaomi’s YU7 has captured consumer attention.

The company’s earlier sedan model, the SU7, faced challenges but still contributed to Xiaomi’s growing market presence. Despite the market’s slow pace, Xiaomi plans to expand its electric car offerings further.

Xiaomi intends to enter international markets, including Europe, in 2026. This expansion could help Xiaomi build on its early success in China and challenge global electric vehicle giants like Tesla.

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