Xiaomi's YU7 SUV: A Bold Move Against Tesla's Model Y

Xiaomi introduces its YU7 SUV, offering a competitive price lower than Tesla's Model Y, to expand its presence in China's automotive market. With a starting price of 253,500 yuan, the YU7 aims to challenge Tesla's dominance and other contenders including Zeekr and Li Auto.

Xiaomi has significantly escalated its competition with Tesla by pricing its latest electric SUV, the YU7, at 10,000 yuan ($1,395) cheaper than Tesla's Model Y. This move comes as a strategic bid to capture the market in China, the world's largest auto market.

Orders for the three models of the YU7—base, Pro, and Max—are now open. Notably, the basic YU7 starts at 253,500 yuan ($35,364), while the premium models YU7 Pro and YU7 Max are set at 279,900 and 329,900 yuan, respectively.

CEO and founder Lei Jun aims to position the YU7 as a serious contender against the Model Y, which was China's top-selling SUV in May. The YU7 offers a driving range of up to 835 kilometers (519 miles), surpassing the redesigned Model Y's 719 kilometers.

(With inputs from agencies.)