Xiaomi to Launch First SUV in Summer 2024

Xiaomi to Launch First SUV in Summer 2024

Chinese electronics giant Xiaomi has announced plans to launch its first SUV, the YU7, in June or July 2024. The company made the announcement on Weibo, alongside an image of the YU7 parked beside its debut electric vehicle, the SU7 sedan. The two models share similar design cues.

Specifications and Capabilities

According to information released by China’s Ministry of Industry and Information Technology, the YU7 is an all-electric SUV with a top speed of 253 km (157 miles) per hour. Its batteries will be supplied by a subsidiary of Chinese battery manufacturer CATL. Xiaomi CEO Lei Jun stated on his Weibo account that the YU7’s key specifications were disclosed early to enable “more comprehensive and extensive large-scale testing” over an extended period.

Surging EV Demand

The YU7 launch comes amid growing demand for electric vehicles in China. Last month, Xiaomi raised its EV delivery target for 2023 to 130,000 units to meet the surge in consumer interest. Xiaomi entered the Chinese EV market in March 2023 with the launch of the SU7 series, a Porsche lookalike with a starting price of less than $30,000. In October, the company unveiled a luxury variant of the SU7, priced to rival Tesla’s Model S Plaid. Xiaomi has also boasted of its performance capabilities, citing a record lap time at Germany’s challenging Nurburgring track.

Financial Performance and Market Outlook

Xiaomi reported a 30.5% increase in its third-quarter revenue in 2023, exceeding analysts’ expectations. The company’s entry into the EV market is expected to further contribute to its growth. Overall, China’s car sales have experienced a significant boost in recent months, driven by government-subsidized auto trade-ins. The growing popularity of electric vehicles and Xiaomi’s competitive pricing strategies position the company well in the burgeoning Chinese EV market.