Xiaomi Corp. presented a new SUV that it plans to introduce in the summer of 2025 in an effort to compete with Tesla Inc. and BYD Co. in the world’s largest electric car market.
Billionaire businessman Lei Jun unveiled the YU7, a sport utility vehicle that looks like Tesla’s Model Y, on Weibo. A nickel-cobalt-manganese battery produced by Contemporary Amperex Technology Co. Ltd. will power the five-meter-long, fully electric SUV. A separate announcement from China’s Ministry of Industry and Information Technology states that the motor’s maximum output will be 220kW or 288kW.
Xiaomi’s shares rose 3.9% in Hong Kong before retracing its gains. The stock has risen by almost 90% since Xiaomi’s first vehicle, the SU7 sedan, went on sale in March.
Lei is personally spearheading Xiaomi’s $10 billion EV initiative, which would benefit greatly from the addition of an SUV. The company is trying to reduce its dependence on the volatile smartphone market, which is dominated globally by Apple Inc., despite entering a crowded market with EVs and facing off against well-established competitors Tesla and BYD. Apple Inc. gave up on its own long-incubating electric vehicle project after failing to overcome challenges in applying its experience to a new production industry.
Xiaomi is preparing to introduce a second version of the SU7 just a few months after the first one was released. This year, the sedan’s delivery target has risen from 120,000 to 130,000 units. The Beijing-based company has already acquired land near its current EV facility and intends to expand manufacture following the initial success of its first vehicle.
