The Xiaomi electric vehicle revolution is causing ripples, where the SU7 sedan and YU7 SUV have been used to launch the tech giant into the top 10 new energy vehicle (NEV) sales in China by August 2025. per centng 36,396 vehicles in the previous month, 19.5 per cent better than July, and a mind-blow, ng 177.6 per cent better than the same month last year—Xiaomi took a 3.3% market share, ranking as the 10th position in the hyper-competitive EV market in China. This was achieved thanks to the 19,848 units of the SU7 and the 16,548 units of the YU7, highlighting the fact that Xiaomi has become a cell phone giant in a very short time, challenging the positions of such giants as Tesla and BYD.
A new sign in the NEV market
The performance of Xiaomi is a sign of something new as the NEV market in China keeps swallowing the world. As the incentives offered by governments and the growing consumer demand contribute to electrification mobility, the combination of innovative technology and low prices offered by the company to the industry transforms it. The February 2024 SU7 sedan and the new YU7 SUV have resonated with consumers due to their sleek design, intelligent connectivity, and affordable prices, reinventing the possibilities of EVs.
Xiaomi Cars: The Smartphone Maker Goes Auto
Xiaomi began its automotive life with the SU7, a sleek SUV that aimed at competing with such high-end vehicles at a quarter of the price. Starting at around $30,000, the SU7 is sold in Standard, Pro, Max and Ultra versions, with the most powerful model having 673 horsepower, a time of less than 3 seconds to 0-60 mph, and a range of 500 miles. Young, urban drivers who prioritise easy connectivity would love its technology-heavy offerings, such as lidar-based autopilot driving and its compatibility with Xiaomi HyperOS. Early 2025 YU7 SUV is the complement to the sedan with family-friendly functions such as roomy interiors and rear-seat entertainment, and targets the 60% of the EV market in China held by SUVs.
Its Beijing factory, which can manufacture 150,000 vehicles each year, is operating at full capacity to satisfy the skyrocketing demand, and it has delivered more than 225,000 units to date. But buyers have been frustrated by long wait times of up to 15 months, and Xiaomi has rushed to open a second Guangzhou facility, which will expand its production to 300,000 units by mid-2026. The sales of the YU7 almost tripled the 6042 units in July to 16,548 in August due to the viral marketing and influencer deals that appeal to millennials who are tech-savvy.
Entering the Chinese EV Elite
The fact that China ranks just in the top 10 sellers of NEV is a feat itself in a market worth half a trillion, dominated by giants such as BYD, which sells millions of units, and Tesla, which captures almost 20 per cent of the market with its Model Y and Model 3. The Zeekr of Geely and L-series SUVs of Li Auto are also very strong contenders, often selling above 50,000 a month. The success of Xiaomi, which surpassed brands such as Nio and XPeng in wholesale volume sales, points to the disruptive capability of the company.
The competitive advantage of Xiaomi is its value proposition, which consists of high-tech EVs at affordable prices. The SU7 Max has more affordable driver-assistance systems (ADAS) than Tesla’s Autopilot, and HyperOS integration allows drivers to control smart home devices via the car, a feature attributed to the 600 million users Xiaomi has. This synergy in the ecosystem, coupled with the over-the-air updates, has driven organic buzz with retail sales surpassing wholesale by 10 per cent in August, a pointer to genuine consumer interest.
Yet, challenges persist. Price wars have reduced margins across the industry, and some brands have reduced their prices by 20% by 2025. Xiaomi has adjusted the pricing of SU7 to remain competitive, whilst increased costs of battery, which have increased by 15% in Q3 2025, pose a threat to its profitability. Tougher laws by the Chinese Ministry of Industry and Information Technology also require stringent quality control, which puts a strain on the long-term viability of Xiaomi as a newcomer.
International aspirations and Economy of scale
The success of Xiaomi in China has consequences around the world. China is the largest auto market in the world, and the development of Xiaomi is attracting international attention. SU7 prototypes have been sighted with the right-hand drive, which implies 2026 (UK and Australia), with the European target of 2027. Such actions will place Xiaomi in competition with ID line by Volkswagen and EVs by Renault, and avoid tariff and emission policies.
Xiaomi is forcing outdated automakers in China. Building on its sales decline in August, Tesla can press more aggressively on its EV models, but Ford and GM, which have fallen behind in the region, could do the same. The battery demand by Xiaomi on suppliers such as CATL and BYD is also straining the global lithium supply, which has led to price increases. In the future, it is estimated by analysts that Xiaomi will reach 500,000 deliveries per year by 2027, with a market share of 5% of the NEV market in China. Projects of a high-end MPV in 2026 and 10 billion dollars in research and development are indications of more innovation, and AI-assisted benefits such as predictive maintenance are coming in the future.
A turning point for Xiaomi
The success of EV in August 2025 is a turning point for Xiaomi. The company is not only selling cars by combining smartphone creativity with automotive daring, but it is also redesigning mobility. As the Xiaomi scale and global strategy begin to form, the company will be able to disrupt the existing order, presenting customers with smarter, cheaper EVs and moving the field towards a more technological future.
