China’s electric vehicle (EV) market saw a major shakeup to start 2026, as Xiaomi’s YU7 electric SUV surged to the top of the national sales rankings, overtaking Tesla’s Model Y and every other passenger vehicle in the country.
According to data from the China Passenger Car Association (CPCA) and Autohome, Xiaomi sold 37,869 YU7 units in January, more than double the 16,845 Model Y vehicles delivered during the same period. That performance not only made the YU7 the best-selling EV in China for the month, but also the top-selling passenger vehicle overall—including both electric and gasoline-powered models.
Tesla’s Model Y, which had previously held the top spot as recently as December 2025, fell to 20th place in the January rankings. Among new energy vehicles (NEVs), which include fully electric and plug-in hybrid models, the Model Y dropped from first place to seventh.
While January’s figures represent a notable win for Xiaomi, monthly sales in China can vary significantly due to seasonal trends, export cycles, and production timing—especially for Tesla, which typically prioritizes exports from Gigafactory Shanghai early in each quarter. As a result, Tesla’s domestic sales in China have historically been weak in the first month of a quarter, and strongest in the final month.
The YU7’s strong performance is especially notable given how recently it entered the market. Xiaomi launched the SUV in the summer of 2025 as its second electric vehicle, following the earlier SU7 sedan. Despite being a newcomer to automotive manufacturing, the Chinese technology giant has quickly gained traction with buyers.
Pricing has played a key role in the YU7’s early success. Xiaomi introduced the SUV with a starting price approximately 10,000 yuan (C$1,970/US$1,450) lower than the Model Y in China, making it a more affordable alternative in a highly price-sensitive market. The company has also positioned the vehicle as competitive on key specifications such as driving range and technology features.
The YU7’s sales momentum has been building steadily. After debuting mid-2025, the SUV gradually climbed the rankings, moving from outside the top 20 into the top five by late 2025 before securing the overall sales crown in January.
Overall, Xiaomi sold 39,002 electric vehicles in January, meaning the YU7 accounted for nearly all of its EV volume during the month. The company delivered over 411,000 vehicles throughout 2025 and has set an ambitious target of 550,000 deliveries in 2026.
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