At 10 p.m. on June 26, just three minutes after sales opened, the Xiaomi YU7 logged 200,000 preorders and over 120,000 locked-in orders. The launch not only broke Xiaomi’s internal record previously set by the SU7, but also marked a milestone in China’s electric vehicle market.
The YU7 enters a crowded field: battery-powered electric SUVs priced between RMB 200,000–300,000 (USD 28,000–42,000).
Tesla’s Model Y, starting at RMB 263,500 (USD 36,890), led China’s automotive sales in 2024 for the second year in a row, with more than 480,000 units sold. That dominance has spurred domestic contenders.
Take Xpeng’s G6, which directly challenged the Model Y with its smart features and competitive pricing, averaging 8,000 monthly units sold for six months after launch. Meanwhile, Luxeed’s R7, under the Harmony Intelligent Mobility Alliance (HIMA), launched at RMB 259,800 (USD 36,372) and briefly peaked at over 10,000 units per month during its first quarter on the market.
Yet sustaining that momentum has been a challenge. Domestic EVs often struggle to retain attention amid rapid product cycles and aggressive discounting.
Tesla, by contrast, has maintained steady sales. From March to May, its updated Model Y delivered 92,000 units, demonstrating its brand resilience despite mixed feedback.
Now, with Xiaomi’s YU7 on the scene, it may be the first domestic SUV with enough appeal to rival Tesla’s pull. 72 hours in, how is the market responding?
More than 100 orders per salesperson, and wait times stretching to 60 weeks
After the launch, Xiaomi founder Lei Jun shared that 196,000 orders were placed within three minutes, with over 120,000 locked in.
In the days that followed, 36Kr visited several Xiaomi showrooms in Beijing.
“By the morning of day two, I already had over 100 locked-in customers,” one salesperson said. “Many switched from the SU7, and most opted for the Pro model.”
Weekend traffic drove much of the surge.
“We had ten test cars running nonstop from 10 a.m. to 7 p.m. over the weekend,” another staffer said. “Walk-ins without appointments could only view the display model.”
Sales staff observed a shift in demographics. Launch-day buyers skewed toward existing SU7 owners choosing higher trims, while weekend visitors were mostly first-time or secondary car buyers leaning toward the base model. The user profile remained consistent: primarily young individuals and small families.
Delivery times are already substantial. According to Xiaomi’s app, customers face a 57–60 week wait for the base model, 50–53 weeks for the Pro, and 37–40 weeks for the Max variant.
“If you locked in on Friday (June 27), there’s still a shot at delivery by year’s end,” one salesperson said. “But most customers prefer to test drive first, and at this point, anyone locking in this week, regardless of model, has virtually no chance of getting their car this year.”
As locked orders hit 289,000 in the first hour, Xiaomi’s lead times swelled to over a year, prompting swift competitive responses.
HIMA quickly announced limited-time incentives for the Luxeed R7: RMB 20,000 (USD 2,800) off the base price, another RMB 10,000 (USD 1,400) discount on “zero-gravity” seats, feature credits, and perks for assisted driving packages.
Still, multiple HIMA sales reps told 36Kr the offers weren’t moving the needle. “Weekend traffic is typically higher, but this time it was about average. Online bookings barely moved, either.”
Tesla’s reaction has been more subdued. Representatives in several cities said no discounts were planned. “Xiaomi is already sold out through 2025,” one salesperson said. “New buyers will now need to pay next year’s purchase tax. Tesla still has the upper hand as the models are stable, and we can deliver quickly.”
Xiaomi’s supply chain is better prepared, but still faces constraints
A year ago, 36Kr reported that Xiaomi’s supply chain scrambled to meet demand after the SU7 launch. This time, the company took preemptive steps.
Multiple suppliers told 36Kr that Xiaomi convened multiple pre-launch meetings to align on targets. “We even got a reminder the morning of the launch to ensure timely, high-quality shipments,” one said.
YU7 production is underway at Xiaomi’s phase-one plant, which also assembles the SU7 and SU7 Ultra. Completed vehicles are already accumulating onsite.
The company’s phase-two plant, scheduled to start operations between July and August, is reportedly ahead of schedule and now in pre-production.
The added capacity should help reduce the 60-week backlog, though ramping up takes time. The phase-one plant took three months to reach 10,000 units per month and six months to reach 20,000.
For Xiaomi, increasing production speed without quality issues is essential to sustaining demand and customer confidence.
Strong style, mixed functionality
Prior to launch, only the YU7’s exterior was displayed. Now that full test drives are underway, its positioning is becoming clearer.
With air suspension, the YU7 diverges from Xiaomi’s typical emphasis on performance.
Several SU7 owners told 36Kr the YU7 lacked the earlier model’s dynamic feel. “It’s a bit floaty,” one said. “Even the sales rep acknowledged it. If I were buying for myself, I’d still go with the SU7.”
The YU7’s interior offers notable improvements in legroom and headroom, and its rear seats recline up to 135 degrees. But the long hood and sloped rear compromise trunk depth and height.
Other feedback came from shorter drivers.
A female customer around 160 centimeters tall noted the hood and dark trim beneath the windshield obstructed her view. “I can see if I raise the seat, but then I can’t reach the pedals comfortably. The SU7 didn’t have this issue.”
With a small trunk and suboptimal ergonomics for some, the YU7 trades utility for aesthetics. It may suit urban commuters more than families.
That opens the door for rivals.
In July, Li Auto will launch the six-seat Li i8, followed by the five-seat i6 in September, which targets the same segment as the YU7.
Leaked images of the i6 suggest Li Auto is prioritizing family needs: a shorter hood for better visibility, and a boxier rear for improved storage.
Just as crucially, Li Auto has built up a reputation and strong brand affinity among families, giving its EV lineup an advantage with the largest buyer demographic in China’s car market.
As demand for the YU7 intensifies, the electric SUV market is entering a more complex phase. What began as a wave of launch-day excitement is now evolving into a broader contest across user preferences, pricing strategies, ownership experience, and production capacity.
Tesla remains the leader, supported by brand loyalty and consistent delivery. Xpeng, HIMA, and others are tweaking prices to regain momentum. Meanwhile, Li Auto is preparing a targeted push with the i6 in September, aimed squarely at the family segment that Xiaomi has yet to capture.
Ultimately, the winners will be those who can interpret consumer needs accurately, scale production without missteps, and continue advancing technically while keeping costs in check.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xu Caiyu for 36Kr.