Chinese smartphone company Xiaomi launched its YU7 electric SUV in summer 2025, taking direct aim at Tesla’s Model Y.
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BEIJING — Xiaomi‘s electric car venture has succeeded in dethroning Tesla in China, at least in January.
The Xiaomi YU7 SUV ranked first in China by sales last month, with 37,869 units sold, twice as many as Tesla’s 16,845 Model Y vehicles, according to data from the China Passenger Car Association.
The Model Y, which was the best-selling model in December, plunged to 20th place in January. Among new energy vehicles, it also fell from the first position to seventh over the same period.
The figures include both electric and gasoline-powered vehicles and were published late Thursday by online car sales platform Autohome.
Xiaomi started selling the YU7, its second electric car model, roughly half a year ago in the summer of 2025.
The Chinese company, best known for its smartphones, hasn’t been shy about its aim to take on Tesla. Xiaomi launched the car at a starting price that was 10,000 yuan ($1,450) below the Model Y in China. The company claimed the model beat Tesla on key metrics such as driving range on a single battery charge.
Analysts last year predicted the YU7 would take market share from the Model Y, Tesla’s best-selling car in China. In December, the Model Y ranked first in monthly sales, ahead of BYD‘s budget-priced Qin Plus car. Xiaomi’s YU7 ranked third.
Monthly sales figures can be volatile. While the YU7 did outsell the Model Y in October, the Xiaomi car did not rank first. Tesla has so far been consistently stronger in sales.
Excluding gasoline-powered cars, Tesla ranked fifth in China sales last year, while Xiaomi placed tenth. For all of 2025, BYD led China’s auto market with over 3 million vehicles sold, followed by Geely at 2.6 million, according to China Passenger Car Association data.
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The YU7’s strong sales in January came despite an overall slowdown in China’s electric car market in recent months.
Xiaomi’s earlier SU7 sedan has also faced scrutiny following fatal accidents involving driver-assist features and electrically-powered door handles. Beijing has since banned hidden door handles, while automakers have started installing external lights that indicate when driver-assist is in use.
Like most Chinese electric car companies, Xiaomi also plans to expand overseas, including into Europe next year.