TL;DRXiaomi’s new $34,300 YU7 undercuts the Model Y by $4,350 with 50km more range. Sales had dropped below 10,000 units a month.
Most CEOs would not go on stage and admit their product was not competitively priced against a rival. Lei Jun did exactly that on Wednesday evening, and then launched a model that fixes it.
At Xiaomi’s “Human x Car x Home” launch event on 21 May, the founder and CEO unveiled the YU7 True Standard Edition, a new entry-level variant of the company’s electric SUV priced at 233,500 yuan (approximately $34,300). That is 30,000 yuan ($4,350) cheaper than the cheapest Tesla Model Y in China, which starts at 263,500 yuan. The previous base YU7, now renamed the Long Range edition, started at 253,500 yuan, only 10,000 yuan ($1,450) below Tesla. Lei said the gap was simply not compelling enough.
The more interesting number is range. The new YU7 Standard Edition delivers 643 kilometres on the CLTC cycle (approximately 399 miles), compared to 593 kilometres (368 miles) for the equivalent rear-wheel-drive Model Y. Xiaomi is offering more range for substantially less money, and doing so with a vehicle that still includes air suspension and LiDAR as standard, features Tesla does not offer at any price point on the Model Y.
