Xiaomi challenges Tesla in China with new electric crossover YU7.

Xiaomi has unveiled its first electric crossover YU7, stating that this model will become a serious competitor to Tesla in China. The new car has a range of at least 760 kilometers, which is more than the Tesla Model Y version.

The price of the YU7 can range from 250,000 to 320,000 yuan, competing with the Tesla Model Y, which costs about 263,500 yuan in China. Monthly sales of the new crossover are forecasted to be around 30,000 units, and production capacity may increase to 360,000 cars per year.

“We expect that the YU7 will significantly reduce the share of the Tesla Model Y in the Chinese market,” said Citi analyst Jeff Chung.

“The YU7 is positioned as a 'luxury crossover' and may surpass the sales of the previous model SU7,” added Eleanor Leung, managing director of CLSA.

In April this year, Xiaomi also presented more than 28,000 electric vehicles SU7, which is still somewhat lower than sales in the previous month. For some time, BYD Seagull has held the leader position among electric vehicles in China, being a more affordable model compared to Tesla.

It is worth noting that Xiaomi also announced the launch of a premium smartphone and competitor Xpeng's plans for an upgraded version of the Mona M03 car after the Chinese New Year in February.