Xiaomi’s new YU7 SUV, unveiled on July 10, 2024, features 800V ultra-fast charging and NVIDIA Thor-powered ADAS, directly competing with Tesla’s Model Y in China.
Xiaomi has entered the electric vehicle market with its YU7 SUV, boasting 800V ultra-fast charging and advanced NVIDIA Thor-powered ADAS. Priced competitively, the YU7 undercuts Tesla’s Model Y in China, with 50,000 pre-orders within 24 hours of its July 10 unveiling.
Xiaomi’s bold entry into the EV market
On July 10, 2024, Xiaomi unveiled its YU7 SUV, marking its official entry into the electric vehicle market. The vehicle features an 800V ultra-fast charging platform, allowing for a 600km range recovery in just 15 minutes. This technology directly challenges Tesla’s Model Y, which recently saw a 5% price cut in China on July 8.
Competitive pricing and advanced tech
The YU7 comes in three variants: Standard (229,900 CNY), Pro (269,900 CNY), and Max (309,900 CNY). These prices undercut the base Model Y, which starts at 249,900 CNY post-price cut. Xiaomi’s HyperOS ecosystem, integrated with its smartphones, offers a seamless tech experience, a unique selling point in the EV market.
NVIDIA Thor-powered ADAS
The YU7’s advanced driver-assistance system (ADAS) is powered by NVIDIA’s Thor chip, which went into mass production on July 9. This system surpasses Tesla’s Hardware 4 capabilities, according to NVIDIA’s announcement. Xiaomi has been confirmed as a launch partner for this cutting-edge technology.
Market response and subsidies
Xiaomi reported 50,000 reservations for the YU7 within 24 hours of its unveiling. The Chinese government’s extension of NEV purchase tax exemptions through 2027, announced on July 5 by the MIIT, further boosts the YU7’s cost advantage.
Historical context
Xiaomi’s entry into the EV market follows a trend of tech companies diversifying into automotive. Similar moves were seen with Apple’s rumored EV project and Huawei’s partnerships with traditional automakers. The success of these ventures remains to be seen, but Xiaomi’s strong brand loyalty in China gives it a unique edge.
The EV market in China has seen rapid growth, with domestic brands like BYD and NIO gaining significant market share. Tesla’s price cuts in July 2024 reflect the intense competition in this space. Xiaomi’s YU7, with its advanced tech and competitive pricing, is poised to disrupt the market further.
