Xiaomi's Tesla Rival, YU7 EV, Will Go on Sale in July

Xiaomi will start selling its YU7 electric vehicle in July, founder and CEO Lei Jun said on Thursday, disclosing the launch date of an SUV that analysts say will be the strongest rival in China to Tesla's best-selling Model Y.

The world's third-largest smartphone maker, which also makes cars, announced specifications for its second EV model alongside launches of smartphones and tablets that use its self-developed chips.

While the actual cost or the pre-order information of the YU7 is not available, Xiaomi has begun selling the handcrafted Xiaomi YU7 1:18 alloy car model in two finishes: Emerald Green and Titanium Silver, with the standard version priced at RMB 599, the gift box version priced at RMB 799, and the premium version priced at RMB 999.

In his presentation of the YU7, Lei made comparisons to Tesla's Model Y. The SU7, for instance, has a driving range of up to 835 kilometres (519 miles) per charge, versus the redesigned Model Y that was launched in January with a range of up to 719 kilometres.

"The Model Y is priced from 263,500 yuan ($36,574), and these (YU7) configurations should make the car 60,000-70,000 yuan more expensive," Lei said. “But we'll talk about the price in July.”

Xiaomi entered the auto sector last year with its sporty EV SU7, which drew styling cues from Porsche and was priced below Tesla's Model 3. Since December, the SU7 has outsold Tesla's Model 3 in China on a monthly basis.

Xiaomi's SU7 deliveries have exceeded 258,000 units since its launch, Lei said on Thursday.

But the company's new EV orders have fallen following a fatal highway crash at the end of March involving an SU7 in driving-assistance mode. Its problems have been compounded by customer complaints of false advertising. Xiaomi apologised for "not clear enough" marketing.

Besides the YU7, Lei also announced a second new self-developed chip called Xring T1. The Xring O1 mobile chip, which the company announced earlier this month, matches Apple's best processor, A18, on performance, he said.

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