Chinese tech giant Xiaomi unveiled its second electric vehicle late Thursday, intensifying competition with Tesla Inc (NASDAQ:TSLA) and domestic rival BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY) in the world’s largest EV market.
The new mid-to-large-sized YU7 SUV boasts a driving range of up to 835 kilometers (519 miles) for its single-motor version, Xiaomi said. That significantly outpaces Tesla’s extended-range Model Y, which advertises a range of about 719 kilometers (447 miles) in China.
With a sleek coupe design, dual-motor acceleration from 0-100 km/h in 3.23 seconds, and integration with Xiaomi’s broader smart device ecosystem, the YU7 is priced competitively at around 300,000 yuan (roughly $42,000).
“Xiaomi is not just building a car—we’re creating a smart mobility experience,” the company said during the May 22 launch event.
Xiaomi entered the EV market less than a year ago and has quickly positioned itself as a serious contender. The YU7 follows the debut of its first EV, the SU7 sedan, launched earlier this year.
The move comes amid a broader shakeup in China’s EV landscape. BYD, China’s top-selling EV brand, is cutting prices on about two dozen models through the end of June in a bid to maintain its lead as newcomers like Xiaomi gain traction.
Tesla has also faced mounting pressure from local brands offering high-performance models at lower prices as driving range and smart tech integration have become key battlegrounds.