New electric vehicle promises longer range, advanced AI, and a lower price
Chinese tech giant Xiaomi is intensifying its push into the electric vehicle market with the launch of its new YU7 SUV, a direct competitor to Tesla’s Model Y. Unveiled Thursday, the YU7 starts at 253,500 yuan ($35,322), making it 10,000 yuan cheaper than Tesla’s Model Y, which retails for 263,500 yuan in China.
“We’re delivering a more advanced vehicle at a more affordable price,” said CEO Lei Jun, emphasizing that the YU7 outperforms the Model Y on several fronts, including battery range. The YU7 offers a driving range of 760 kilometers (472 miles) on a single charge — surpassing Tesla’s extended-range Model Y at 719 kilometers.
Massive demand and delivery window
Pre-sales for the YU7 opened Thursday night and were met with immediate demand. Within just three minutes, Xiaomi reported over 200,000 orders. Deliveries are expected to begin within one to five weeks, marking a quick rollout for the tech giant’s second electric vehicle, following the SU7 sedan launched last year.
The YU7’s price range, expected to fall between 250,000 to 320,000 yuan ($34,800 to $44,590), matches prior analyst forecasts. Citi analysts predict the SUV could eventually sell 300,000 to 360,000 units annually once full production ramps up.
AI integration and premium features
The YU7 comes equipped with an advanced driver-assist system powered by Nvidia’s Thor chip, although Lei acknowledged it still lags behind Tesla in autonomous features. Other highlights include Apple CarPlay, Apple Music integration, gesture-based media control, and an AI assistant capable of helping users locate their parked vehicle.
These features mark Xiaomi’s deeper foray into AI integration, even as the company has been less vocal than peers about its AI ambitions. The YU7’s launch also arrives amid an aggressive price war in China’s EV market, where both domestic and foreign brands are slashing prices to maintain competitiveness.
Xiaomi enters smart glasses market
Alongside the SUV, Xiaomi also debuted its AI-connected smart glasses, a direct competitor to Meta’s Ray-Ban offering. Priced at 1,999 yuan ($279), the glasses feature adaptive lens tinting, QR code scanning for payments, real-time translation, and AI-powered object recognition — all operated via voice or touch commands.
Like Meta’s smart glasses, Xiaomi’s device also allows users to take photos and videos. However, the product will be exclusive to the Chinese market for now, with no international release plans confirmed.
