In an attempt to compete with Tesla Inc. and BYD Co. in the largest electric car market in the world, Xiaomi Corp. unveiled a new SUV that it intends to launch in the summer of 2025.
In a Weibo post, billionaire entrepreneur Lei Jun revealed the YU7, a sport utility vehicle that resembles Tesla’s Model Y. The SUV, which is five meters long and entirely electric, will be powered by a nickel-cobalt-manganese battery manufactured by Contemporary Amperex Technology Co. Ltd. According to a different announcement from China’s Ministry of Industry and Information Technology, the motor will have a peak output of 220kW or 288kW.
In Hong Kong, Xiaomi’s stock increased by 3.9% before reversing its gains. Since Xiaomi’s first car, the SU7 sedan, went on sale in March, the stock has increased by more than 90%.
An SUV would be a significant addition to Xiaomi’s $10 billion EV project, which Lei is personally leading. Although it is entering a crowded market with EVs and competing against well-established rivals Tesla and BYD, the business is attempting to lessen its reliance on the unstable smartphone industry, which is controlled globally by Apple Inc. After failing to overcome obstacles in transferring its expertise to a new production industry, Apple Inc. abandoned its own long-incubating electric vehicle project.
Only a few months after releasing the SU7, Xiaomi is getting ready to release a second variant. The sedan’s delivery objective has increased from 120,000 to 130,000 units this year. After the initial success of its first vehicle, the Beijing-based company plans to expand manufacturing and has already purchased land close to its current EV plant.
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