Chinese electronics company Xiaomi has made a powerful entry into the electric vehicle market. The company received an overwhelming response to its first sport utility vehicle (SUV), gathering 289,000 pre-orders within just one hour of launch.
The YU7, a sleek five-seater electric SUV, was introduced with a starting price of 253,500 yuan, which is about $35,000. The vehicle features advanced smart driving technology and aims to compete in China’s growing electric vehicle market.
Lei Jun, founder and CEO of Xiaomi, shared his excitement in a video after the launch. “In just two minutes, we received 196,000 paid pre-orders and 128,000 lock-in orders,” he said. Lei called the moment “miraculous” for China’s auto industry.
Xiaomi’s electric vehicle unit confirmed the total number of pre-orders on its Weibo social media page. The company stated that the launch turnout had exceeded all expectations and marked a major achievement in its expansion into car manufacturing.
Xiaomi first entered the electric vehicle market with the SU7 model last year. This move was part of a larger goal to expand its consumer tech brand into transportation and mobility. The new YU7 SUV is designed to offer comfort, performance, and smart features at a competitive price.
News of the high pre-order volume helped push Xiaomi’s stock to a record high on the Hong Kong Stock Exchange. The share price jumped as much as 8% during trading before settling at a record closing level.
The success of the YU7 reflects increasing consumer interest in electric vehicles in China. As more companies enter the space, competition is heating up, and Xiaomi is positioning itself as a strong new player.
The Chinese government is also pushing for greater electric vehicle adoption. Premier Li Qiang spoke at the World Economic Forum in Tianjin this week and shared plans to turn China into a “major consumption powerhouse.” He emphasized that electric vehicles are one of the high-value goods the country wants to promote through strong policy support.
Despite the recent success, Xiaomi’s electric car division has faced some challenges. In March, a Xiaomi SU7 vehicle was involved in a fatal crash. The car was in assisted driving mode at the time, and the accident claimed the lives of three students. The incident raised questions about the safety of intelligent driving systems, though interest in Xiaomi vehicles remains high.
The YU7’s launch, however, signals that the company has not lost momentum. Consumers appear to be excited about the blend of advanced technology, modern design, and affordability offered by the new model.
Xiaomi’s entry into the electric vehicle market is part of a broader shift among tech companies in China. Many are now investing in smart mobility, artificial intelligence, and electric power to meet the rising demand for cleaner, more connected transportation solutions.
The YU7 offers a range of features typically found in more expensive models, making it attractive to younger and middle-class buyers looking for both style and smart functions. Industry watchers say Xiaomi’s approach of integrating its tech expertise into automobiles could help it stand out in a crowded market.
The first batch of YU7 vehicles is expected to begin delivery later this year. Xiaomi said it is working hard to meet demand and scale up production to match the level of interest shown during the pre-order phase.
If the current trend continues, Xiaomi could quickly become a major force in China’s electric vehicle sector. The strong debut of the YU7 has already set a high bar for future launches from the brand.
As the country continues to support electric vehicles with incentives and infrastructure, companies like Xiaomi are well-positioned to benefit. The YU7 launch has not only captured headlines but also signaled a new chapter for China’s auto market.
