Xiaomi’s YU7 Electric SUV Dethrones Tesla in China’s January Sales Race

BEIJING – Xiaomi’s foray into the electric vehicle market has successfully unseated Tesla in China, at least for the month of January. The Xiaomi YU7 SUV claimed the top spot in China’s sales figures for January, with an impressive 37,869 units sold. This figure more than doubled Tesla’s sales of 16,845 Model Y vehicles during the same period, according to data released by the China Passenger Car Association.

The Tesla Model Y, which had held the position of best-selling model in December, experienced a significant drop in January, falling to 20th place overall. Within the category of new energy vehicles (NEVs), the Model Y also slid from its leading position to seventh. These sales figures, which encompass both electric and gasoline-powered vehicles, were published by the online car sales platform Autohome.

Xiaomi began selling the YU7, its second electric car model, approximately six months prior, in the summer of 2025. The company, widely recognized for its smartphone manufacturing, has openly stated its ambition to challenge Tesla in the automotive sector. Xiaomi strategically launched the YU7 with a starting price that was 10,000 yuan ($1,450) lower than the Model Y in the Chinese market. Furthermore, Xiaomi asserted that the YU7 outperformed the Model Y in crucial metrics, including driving range on a single battery charge.

Industry analysts had previously predicted that the YU7 would capture market share from Tesla’s highly popular Model Y in China. In December, the Model Y had indeed secured the first position in monthly sales, ahead of BYD’s competitively priced Qin Plus car. Xiaomi’s YU7 ranked third in that month’s sales.

It is important to note that monthly sales figures can be subject to volatility. While the YU7 did outsell the Model Y in October, it did not achieve the number one ranking that month. Historically, Tesla has demonstrated more consistent sales performance.

When considering only new energy vehicles for the entirety of 2025, Tesla ranked fifth in China’s sales, while Xiaomi secured tenth place. For the full year 2025, BYD emerged as the leader in China’s automotive market, selling over 3 million vehicles. Geely followed, with 2.6 million vehicles sold, according to data from the China Passenger Car Association.

The strong sales performance of the YU7 in January occurred despite a broader slowdown observed in China’s electric car market in recent months. This broader market trend has seen reduced growth in NEV sales.

Xiaomi’s earlier electric sedan, the SU7, has faced some challenges and scrutiny. This includes incidents of fatal accidents linked to its driver-assist features and electrically-powered door handles. In response to these concerns, Beijing has since implemented a ban on hidden door handles. Automakers have also begun incorporating external indicator lights to signal when driver-assist systems are actively engaged.

In line with the expansion strategies of many Chinese electric car manufacturers, Xiaomi also has international ambitions. The company plans to extend its global reach, with a projected expansion into the European market next year. This move signifies Xiaomi’s intent to compete on a global scale beyond its domestic market. The YU7’s January sales surge, therefore, represents a significant early victory for Xiaomi in its ambitious automotive venture, demonstrating its potential to disrupt the established order in China’s highly competitive EV landscape. The company’s aggressive pricing strategy and focus on key performance metrics appear to be resonating with Chinese consumers, offering a compelling alternative to established players like Tesla. The ongoing developments in regulatory responses to EV safety features and Xiaomi’s international expansion plans will be critical factors to monitor as the YU7 and SU7 models continue to evolve in the market.