In the evening of 26 June, Xiaomi Auto’s second product YU7 was officially listed.Subsequently, the company’s official microblogging said that the 3-minute YU7 big set to break through 200,000 units.
As of about 22:45 pm, Xiaomi’s US ADR rose about 8.24%.
According to reports, the Xiaomi YU7 has a length, width and height of 4,999mm, width of 1,996mm and height of 1,600mm, with a wheelbase of 3 meters, and is priced at 253,500 yuan for the standard version, 279,900 yuan for the PRO version and 329,900 yuan for the Max version.Judging from the pricing, the YU7 is mainly targeting the mid-size SUV market.Lei Jun said at the launch that the Model Y has been the top seller in the segment for many years, and he made a detailed comparison between various parameters of the YU7 and the Model Y.However, he also said that Tesla is still much ahead in terms of energy consumption and FSD.
Similar to the listing of SU7, before the new car was listed, Lei Jun kept making noises through social platforms to build momentum for YU7.On 25 June, Lei Jun wrote that Xiaomi YU7 will be a key test for Xiaomi Automobile, because SUV is the real main battlefield of the automotive industry, and YU7 is about to usher in the most brutal competition.
In the 200,000 to 300,000 yuan class pure electric SUV market, in addition to the Tesla Model Y, this segment also has Xiaopeng G9, Azure ES6 and other products.In addition, the range-extended electric vehicles launched by Li auto, AITO, and Luxeed are also located in this price range.This means that the price zone where the Xiaomi YU7 is located is very competitive.
YU7 is the second product launched by Xiaomi Auto, the first car SU7 current monthly sales amount to nearly 30,000 units or so.Although SU7 has a good market performance after the listing, but millet car is still facing the problem of rebuilding security trust.
In March this year, a fatal car accident that occurred in Tongling, Anhui Province, put Xiaomi SU7 into the limelight.The incident was followed by regulatory corrections on publicity issues such as assisted driving.The following May, Lei Jun responded to the impact of the SU7 accident in an internal speech, saying that Xiaomi had been subjected to a furious storm of questions, criticisms and accusations, and that traffic accidents were unavoidable, but that he hadn’t expected the accident to hit Xiaomi so hard.He said, “millet is no longer a newcomer to the industry, there is no rookie protection period in any industry, to have higher standards and goals.”
On the other hand, Xiaomi Auto has also been embroiled in a storm of false propaganda and other controversies over the SU7 Ultra carbon fibre hood controversy, which has sparked some controversy with the view that Xiaomi Auto has always been more high-profile in terms of marketing.With the intensification of market competition, more and more car companies are beginning to reflect on this marketing model, trying to win the market by improving product power and service quality.
At this conference, Lei Jun also emphasised the importance of safety.He said that safety is not just about luxury, but safety is the prerequisite and foundation.
Although the launch of YU7 may have a certain diversion effect on potential SU7 buyers, the industry still believes that millet car sales are expected to grow further.Along with its sales growth, millet car is expected to achieve a single quarterly profit. 3 June, Lei Jun said at the millet investor conference, millet car business losses are gradually narrowing, is expected to achieve profitability in the third and fourth quarters of this year.Xiaomi group financial report shows that in the first quarter of 2025, millet intelligent electric vehicles and AI and other innovative business segments total revenue of 18.6 billion yuan, accounting for 16.71% of the total revenue of millet group, intelligent electric vehicle revenue of 18.1 billion yuan, up 10.7% compared to the previous quarter, the operating loss narrowed to 500 million yuan.
The “2024 Xiaomi Automobile New Four Layout Analysis Report” published by Zosi Automobile Research and Development said that Xiaomi Automobile has multiple advantages, such as the company’s abundant capital, high brand awareness, large fan base, excellent marketing and pre-sale activities.However, Xiaomi Auto also has some shortcomings, including insufficient experience in car manufacturing, insufficient R&D accumulation, and the need to polish software and manufacturing quality.
According to the aforementioned report, Xiaomi’s challenge is undoubtedly huge as it crosses over directly to building its own automotive factory and manufacturing cars under the premise that all of its mobile phones are OEM.For example, the company has relatively insufficient technical accumulation in battery management, in-vehicle systems, power batteries, and autonomous driving development; insufficient investment in EE architecture, automotive basic software, and charging and switching facilities; and insufficient accumulation in batteries, hybrids, chassis, and manufacturing.
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