Xiaomi has unveiled a cheaper version of its popular YU7 SUV in China aimed squarely at the Tesla Model Y, with the automaker going as far as referencing the Model Y in its marketing materials.
According to details released on Thursday, the new entry-level Xiaomi YU7 Standard comes with a starting price of 233,500 yuan (C$47,300/US$34,300), making it roughly 30,000 yuan (C$6,100/US$4,400) cheaper than Tesla’s entry-level Rear-Wheel Drive (RWD) Model Y in China.
Xiaomi founder and CEO Lei Jun made no effort to hide the company’s target, saying during the launch event that the new variant was designed to “once again challenge” the Model Y on sales in China. The company’s marketing materials even compare the new YU7 specs against the Model Y.
While the new YU7 Standard Edition lowers the entry price, Xiaomi says buyers are still getting the same experience from higher-end models.
The biggest change is the battery pack. The new version swaps the previous 96.3 kWh battery for a smaller 73.0 kWh lithium iron phosphate (LFP) pack supplied by CATL. Despite the reduction in capacity, Xiaomi claims the SUV can still travel 643 km on China’s CLTC testing cycle, compared to 593 km for Tesla’s Model Y RWD.
Xiaomi also highlighted charging performance, claiming the YU7 can recharge from 10% to 80% in 20 minutes and recover up to 405 km of range in just 15 minutes using its 752-volt architecture.
Performance remains competitive as well. The RWD SUV produces 235 kW (315 horsepower) and can accelerate from 0-100 km/h in 5.9 seconds.
For Xiaomi, the YU7 has become a critical part of its ambitions beyond smartphones. The company delivered more than 36,000 vehicles in April alone, although YU7 deliveries slowed as production shifted toward the updated SU7 sedan lineup.
Still, Xiaomi has ambitious goals ahead. The company is targeting 550,000 vehicle deliveries in 2026, meaning it will need to sustain monthly production levels well above its current pace for the remainder of the year.
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