May 22, 2025 – Lei Jun, Xiaomi’s founder and CEO, on Thursday announced that the company’s new electric SUV, the YU7, is expected to launch in July 2025. This announcement was made by Lei Jun through a Weibo post.
Xiaomi’s introduction of new electric SUVs signals its growing interest in entering the competitive electric vehicle industry. The YU7 is expected to be manufactured at Xiaomi's F2 EV factory in Yizhuang, Beijing, which is scheduled for completion by July 2025.
The new YU7 SUV is being marketed as a major rival to Tesla’s top-selling Model Y. Revamped Model Y, introduced earlier this year, starts at 263,500 yuan ($36,579) in China.
Lei mentioned in the post that Xiaomi will neither disclose the official prices for the YU7 nor start accepting pre-orders for the new car at the pre-launch event. Xiaomi will also introduce its self-developed XringO1 advanced mobile chip, new flagship smartphones, and other new products.
Growing environmental concerns and implementation of stringent emission regulations are putting electric vehicles into the limelight. Automakers as well as companies like Xiaomi, the world's third-largest smartphone maker, are focusing on developing electric vehicles to capitalize on emerging opportunities.
Electrification of premium cars like SUVs is expected to provide a strong impetus for the expansion of the global sports utility vehicle (SUV) market. According to Coherent Market Insights (CMI), the target industry is poised to record significant growth in the coming years.
“Development of electric SUVs, such as Xiaomi’s YU7, signals a growing trend towards electrification in the sports utility vehicle industry. As safety becomes a top priority and consumer interest in energy-efficient vehicles increases, more companies are expected to launch electric SUVs” says a senior analyst at CMI.”
Xiaomi's launch of YU7 electric SUV positions it as a serious contender in China’s highly competitive EV landscape. It will further encourage innovation as well as pricing strategies from both new entrants and established automakers.
Automakers, especially in the SUV segment, are expected to introduce new electric and hybrid models to meet evolving consumer demand as well as comply with regulations. They will also look to incorporate new features to stay ahead of auto giants like Tesla.
Sources:
News Outlet: Reuters