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Xiaomi launched a new entry-level YU7 “Standard Edition” today priced at RMB 233,500 (~$32,400) — undercutting the Tesla Model Y by RMB 30,000 ($4,350) while delivering 643 km of range versus the Model Y’s 593 km.
CEO Lei Jun admitted onstage that the original YU7’s pricing was “not competitive enough” against Tesla, with only a RMB 10,000 (~$1,450) gap. The company also unveiled the 1,003-HP YU7 GT, which shattered the Nürburgring SUV record by 14 seconds.
Lei Jun takes direct aim at Tesla’s pricing
During tonight’s “Human x Car x Home” launch event, Lei Jun was unusually direct about the YU7’s competitive positioning. He acknowledged that the original YU7, which launched at RMB 253,500 last June, was only RMB 10,000 cheaper than the Tesla Model Y, and that this wasn’t enough to consistently outsell Tesla’s best-selling SUV.
