Xiaomi Launches YU7 SUV In Beijing to Challenge Tesla’s Model Y

Xiaomi has unveiled its new electric SUV, the YU7, at 13 showrooms in Beijing, continuing its push into China’s competitive EV market, Reuters reporters Qiaoyi Li and Alessandro Diviggiano wrote.

The YU7 launch comes amid a slowdown in new orders and increased scrutiny. Photo: Xiaomi

The YU7 follows the strong performance of the SU7 sedan, which has consistently outsold Tesla’s Model 3 in monthly sales since December. Orders for the YU7 open in July.

Analysts say the SUV could pose a serious challenge to Tesla’s best-selling Model Y.

However, the launch comes amid a slowdown in new orders and increased scrutiny. Xiaomi faces an investigation into a fatal March crash involving an SU7 using driver-assist technology.

The company has also apologized for misleading advertising following customer complaints.