- Smartphone giant Xiaomi disrupted the Chinese EV market with the SU7, a Taycan-like performance EV with incredible software and great specs.
- Its first SUV, the YU7, sold out almost instantly. Clearly, Xiaomi has a hot brand.
- Now, the company wants to expand sales to Europe and other markets.
Xiaomi is already crushing in the car market. The smartphone company’s first car, the SU7 super-sedan, was a smash hit in China. Its software and overall user experience are so good that even Ford’s CEO fell in love. Hot demand means it’s still hard to get an SU7 today. Plus, the company recently begain rolling out the YU7, its first SUV. That’s already a hit, too, and our man Kevin Williams loved it. So with all of that success under its belt, Xiaomi is looking for new markets to conquer.
Next up: Europe.
The company is planning to launch in Europe by 2027, as Bloomberg reported today based on the company’s second-quarter earnings call. The company’s automotive unit set a second-quarter record, delivering 81,000 EVs in the quarter and over 30,000 cars in July alone. It also noted a stunning response to opening up YU7 orders: 240,000 reservations in 18 hours. Plus, in April, the Xiaomi SU7 Ultra broke its own EV Nürburgring record, showing that the company is at the top of the mountain for electric performance, too.
In a recent note to investors, analysts at Morgan Stanley noted that Tesla itself had fallen behind the Chinese companies it inspired. The analysts—which, led by Adam Jonas, are generally bullish on Tesla—argue that companies like Xiaomi have surpassed it.
“We recommend investors have a look at the pictures and specs of the Xiaomi YU7, which looks like a Ferrari or Aston Martin SUV at the price of a Toyota Camry. Then ask yourself if Tesla would be better off introducing more steering-wheel-having EVs,” the analysts said in May.
More Xiaomi News
It’s a good time to be Xiaomi. But the company is not immune to the realities of the market. China’s auto market is saturated, with many players struggling to stay in business. Xiaomi isn’t one of them; it has demonstrated staying power in the Chinese auto market and has the electronics arm to support the business. But that does mean it will likely need global sales if it wants to continue growing.
The YU7 is Xiaomi’s first crossover. It looks great.
Photo by: Kevin Williams/InsideEVs
Europe is a natural choice, as the country’s tariff regime is gentler than the U.S.’s for Chinese EVs and almost nonexistent for hybrids. It’s also a market that has a buyer base interested in high-performance EVs, and one where Chinese companies like Zeekr, BYD and Leapmotor already compete.
There’s no word on what products are heading to China, but I’d bet on both the SU7 and YU7 making it over. I don’t know how much they’ll cost, either. If I know Xiaomi, though, expect the company to undercut its rivals and push hard to outcompete them. That’s what the company has done in China, and it’s working so far.
Contact the author: Mack.Hogan@insideevs.com