Xiaomi set to unveil Tesla-rival YU7 Thursday
Xiaomi is preparing to launch its much-anticipated YU7 electric SUV this Thursday, aiming to compete head-to-head with Tesla’s Model Y in the Chinese market. Although fans expected to see the YU7 debut at last month’s Shanghai Auto Show, the company delayed the unveiling. Now, alongside the YU7, Xiaomi will also introduce its latest mobile chip the Xring O1 and the Xiaomi 15S Pro smartphone.
Xiaomi’s founder and CEO, Lei Jun, shared the announcement on his Weibo account earlier this week. According to him, the YU7 is designed to elevate Xiaomi’s position in the electric vehicle (EV) segment. After launching the SU7 sedan last year, which has consistently outsold Tesla’s Model 3 since December, Xiaomi is pushing deeper into the EV space. However, recent demand for the SU7 has declined, following a fatal accident in March involving the vehicle.
Even so, analysts believe the YU7 could capture significant market share. Because China’s EV market remains the world’s largest and most competitive, Xiaomi’s move signals a clear intention to establish itself as a top-tier automaker.
Expanding Beyond Vehicles: Chips and Smartphones
Xiaomi’s ambitions don’t stop at electric cars. As competition in China’s smartphone industry intensifiesparticularly from Huawei and Apple Xiaomi is investing heavily in in-house chip development. In a separate Weibo post, Lei Jun revealed that the company has invested 13.5 billion yuan ($1.87 billion) into creating the Xring O1 mobile chip. Notably, the company has pledged to invest at least 50 billion yuan more over the next decade.
While Xiaomi first entered chip development in 2014, early efforts were hindered by setbacks. For a time, it shifted focus to simpler components like battery management and image chips. However, with its re-entry into chipmaking aligned with its automotive expansion in 2021, Xiaomi appears more determined than ever.
Pursuing a Long-Term Technology Vision
Despite previous challenges, Lei Jun emphasized Xiaomi’s continued commitment to chip innovation. He described chip development as essential to becoming a “great hard technology company.” To that end, Xiaomi sees semiconductors not just as a technical challenge but also as a symbol of its long-term ambitions.
Given the company’s aggressive investments and growing product ecosystem, it is clear Xiaomi intends to be more than just a smartphone or EV brand. As Thursday’s launch nears, industry watchers will be eager to see how Xiaomi’s new products measure up in both performance and public reception.
