Xiaomi's EV is racing ahead of Tesla in China – and it's planning a global Model Y rival next

• The Model 3 was once the most popular EV in China
• Xiaomi’s SU7 surpassed Model 3 sales, despite only being on sale for a year
• The Chinese company built 70,000 SU7 EVs in the first six months

According to the most recent sales figures, which cover April 2024 to the end of January 2025, Xiaomi sold more SU7 models in China than Tesla sold Model 3s, beating the US automaker by around 10,000 cars.

Amazingly, this is the first vehicle the electronics manufacturer has ever produced and it has only taken around year to cement its reputation as one of the hottest EVs on sale in its domestic market.

Where the Model 3 was one of the most desirable electric vehicles in China, recent numbers reveal that its sales are slipping, with the brand selling just 8,009 cars in January of this year, compared to Xiaomi, which sold 22,897 SU7 models, according to figures collated by Tesla delivery estimates expert Troy Teslike on X.

Tesla was the first foreign automotive manufacturer to wholly own a factory in China, with its rivals having to share profits and technology with domestic companies under various joint ventures and partnerships.

But now, it seems that the view of Tesla as a luxury foreign EV maker is waning and demand for Tesla’s cars in general is cooling. Despite a revamped Model Y going on sale in China recently, its overall sales in the country dipped by 51.47% in January, according to Teslarati.

While the Model 3 is rapidly slipping down the Chinese sales charts, the Model Y was the second best-selling car at the end of last year, only marginally beaten by the much smaller BYD Seagull, according to Car News China.

To compound Musk's woes further, Xiaomi is gearing up for full-scale production of its second EV – the YU7 SUV that will directly challenge Tesla’s Model Y, as well as more premium offerings from Mercedes-Benz, BMW and Porsche.

With such a compelling offering and plans to expand into global markets, Xiaomi might not just have a "Tesla-killing" line-up, but one that could have the wider automotive industry worried.

Xiaomi 'going global' will hit premium EV makers

Speaking at Mobile World Congress in Barcelona this week, Xiaomi’s President William Lu told CNBC the company will be releasing EVs for the global markets “within the next few years”.

The announcement was timed with the launch and unveil of the SU7 Ultra, a high-performance, 1,517hp version of its best-selling EV that requires a special test to drive in China and has been breaking lap records at the Nurburgring.

Slated to cost 529,000 Chinese yuan (or around $72,627), it undercuts the most potent electric model from Porsche – the Taycan Turbo GT – by over $200,000, as well as offering levels of race-focussed Performance that Tesla’s Plaid badge could only dream of.

The debut SUV from Xiaomi is due to go into production this summer and, as with the SU7, customer demand is already at fever pitch. The company’s share price hit an all-time high in February when it released more specific details of its second model.

It’s easy to see why, with a driving range of 510 miles (123 more than the 2025 Tesla Model Y), a staggering 691hp on tap, smartphone-derived in-car technology and the latest Lidar-based autonomous driving tech, it represents excellent value for money... and it's not bad looking, either.

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