Xiaomi launches yu7 electric car with price lower than the Model Y of Tesla

Xiaomi reported the price of its newest model, the YU7 electric SUV, in 253,500 iuanes (R $ 194,946), about 4% lower than Tesla’s model Y. The news increases the challenge of the American automaker in the largest automotive market in the world.

YU7’s basic model costs 10,000 iUanes (R $ 7,678) less than Tesla Model Y’s starting price in China, with the Yu7 Pro and Yu7 Max models costing 279,900 iUanes (R $ 215,121.00) and 329,900 yuan (R $ 253,504), respectively.

Xiaomi began to receive orders for all three models on Thursday night (26), reaching 200,000 orders in 3 minutes after the start of sales.

Tesla’s Model Y, which was China’s best -selling SUV in May, starts at 263,500 iuanes ($ 202,499) in China.

Expansion

Xiaomi said it will partner with BYD, GAC Toyota and Zhengzhou Nissan to build an ecosystem that connects humans, houses and cars.

The executive president and founder of Xiaomi, Law Jun, has stated that he wants the Yu7 to comply with the Model Y. Analysts claim that he is the potential model to be successful.

“YU7 will serve as an initial test to find out if Xiaomi can expand its appeal beyond the early users and technology enthusiasts to become a serious participant in the mass market segment,” said Rosalie Chen, senior analyst at Third Bridge.

The vehicle has a range of up to 835 kilometers per load, compared to the autonomy of up to 719 kilometers from Model Y, which had its updated version released in January.

YU7 has been Xiaomi’s second car since the Beijing -based company entered the automobile sector last year with its Su7 sports sedan, which was inspired by the Porsche style and was priced below Tesla’s model 3. Since December, SU7 has surpassed Tesla’s Model 3 in China on a monthly base.

In March, Xiaomi increased its target of electric vehicle delivery this year to 350 thousand, compared to the previous objective of 300 thousand units.