Beijing - Xiaomi’s electric SUV, the YU7, ranked first in China by monthly vehicle sales in January, overtaking Tesla’s Model Y, according to data released by the China Passenger Car Association.
The YU7 recorded 37,869 units sold last month, more than double the 16,845 units of Tesla’s Model Y. The Tesla vehicle, which held the top spot in December, dropped to 20th place overall in January.
Among new energy vehicles alone, the Model Y fell from first position in December to seventh in January.
Xiaomi began selling the YU7, its second electric vehicle, in summer 2025. The model was launched at a starting price 10,000 yuan lower than Tesla’s Model Y in China, positioning it as a direct competitor.
The Chinese technology company, widely known for its smartphones, has publicly stated its intention to challenge Tesla in the electric vehicle market. At launch, Xiaomi said the YU7 outperformed the Model Y in certain specifications, including driving range per charge.
Analysts had previously indicated that the YU7 could take market share from the Model Y, which remains Tesla’s best-selling car in China.
However, industry observers note that monthly sales figures can fluctuate. While Xiaomi also outsold Tesla in October, the YU7 did not rank first that month. Over the full year 2025, Tesla placed fifth among electric vehicle sellers in China, while Xiaomi ranked tenth. BYD led overall auto sales with more than 3 million vehicles sold.
The strong January performance comes amid a broader slowdown in China’s electric vehicle market.
Xiaomi’s earlier SU7 sedan has faced regulatory scrutiny following fatal accidents linked to driver-assist features. Authorities have since introduced tighter safety measures, including restrictions on hidden door handles and clearer indicators for driver-assist systems.
Despite regulatory challenges, Xiaomi plans to expand its electric vehicle business overseas, with Europe among its target markets next year.
