Xiaomi’s Electric SUV Blitz Could Reshape Australia’s EV Landscape

Cars
July 3, 2025

Xiaomi’s Electric SUV Blitz Could Reshape Australia’s EV Landscape

By Vincent John Jacobs

Xiaomi’s YU7 Electric SUV Could Disrupt Australia’s EV Market

Chinese tech conglomerate Xiaomi has deepened its push into the electric vehicle (EV) market with the launch of its YU7 SUV, attracting over 289,000 pre-orders in just 60 minutes. The company’s second vehicle, following the SU7 sedan, is already positioning itself as a serious rival to Tesla’s Model Y, and could soon have implications for Australia’s EV buyers.

An SUV With Supercar Style

The YU7’s design leans heavily on premium cues, with McLaren-inspired headlamps and Ferrari Purosangue styling that defy its relatively modest price tag. Starting at ¥253,900 (approximately A$53,000), the YU7 undercuts the Tesla Model Y by roughly A$2,200 in China, while delivering an impressive 835 km of range on a full charge, thanks to a 96.3kWh battery and 800-volt charging system.

Inside, the YU7 offers a connected experience that leverages Xiaomi’s vast smart device ecosystem. It includes a widescreen digital cockpit, adaptive cruise control, and Level 2+ driver assistance. Combined with deep integration between car and phone, the vehicle appeals to tech-savvy buyers looking for seamless connectivity between home and vehicle.

Record-Breaking Launch and Market Signals

The overwhelming pre-order numbers helped push Xiaomi’s share price up 8% to a record high, signalling investor confidence in the company’s automotive ambitions. The YU7 has now eclipsed the launch performance of the earlier SU7, which itself had drawn more than 100,000 orders earlier this year.

Xiaomi reportedly plans to deliver 100,000 units of the YU7 by the end of 2025, bringing its total projected EV sales to over 380,000 vehicles across both models.

Will It Reach Australia?

While there is no official confirmation of the YU7’s export plans, its arrival in Australia would come at an opportune time. Local appetite for EVs has grown rapidly in the last two years, with buyers increasingly drawn to sub-$60,000 models that don’t skimp on performance or features. Tesla remains a top seller nationally, but the entry of Chinese EV makers like BYD has already shaken up the market. Xiaomi could be next.

The YU7’s long range, smart-home connectivity, and distinctive styling would likely appeal to a broad cross-section of Australian buyers, from urban professionals and family drivers to tech enthusiasts looking for tight integration with their Xiaomi devices.

Tesla, already facing price pressure from newer rivals, may soon have to adjust its local pricing strategy again. One industry analyst noted that the YU7’s launch “underscores how legacy EV players now face the kind of disruption they once embodied”, a dynamic that could very well play out in Australia’s EV sector.

A Broader Strategy

Xiaomi’s automotive push isn’t just about vehicles, it’s part of a broader plan to expand its role in consumers’ daily lives. With smartphone sales plateauing globally, the company sees EVs as a new pillar in its ecosystem. This strategy aligns well with Australia’s rising demand for integrated smart technologies and sustainable mobility solutions.

Whether the YU7 will be formally introduced to the Australian market remains to be seen. But if early indicators are anything to go by, Xiaomi’s momentum in the EV space is only accelerating, and local buyers may soon benefit from the increased competition.