Xiaomi is poised to launch its YU7 electric sport utility vehicle (SUV), which is anticipated to be a competitor to Tesla’s Model Y in the Chinese market, this week.
Xiaomi’s move into electric vehicles (EVs) began last year with the SU7 sedan, and since December 2024, this model has been outselling Tesla’s Model 3 monthly.
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Despite the success of the SU7 sedan, Xiaomi has seen a decline in orders following a fatal accident in March.
However, the company’s commitment to the EV market remains strong.
Xiaomi founder and CEO Lei Jun announced that the YU7 will be launched at the event, marking a milestone for the company that has diversified from its original product lineup of smartphones and smart gadgets.
The launch event will also introduce the Xring O1 mobile chip and the new Xiaomi 15S Pro smartphone.
Lei Jun also highlighted Xiaomi’s investment of 13.50bn yuan ($1.87bn) in the development of its advanced mobile chip, the Xring O1.
With plans to invest a further 50bn yuan in chip design over the next decade, Xiaomi is positioning itself as a major player in the integrated technology ecosystem, alongside rivals such as Huawei and Apple.
A Xiaomi representative confirmed to Reuters that the 50bn yuan investment timeline would commence from 2025.
He was quoted by the news agency as saying: “Xiaomi has always had a chip dream because in order to become a great hard technology company, chips are a peak that must be climbed. We will definitely go all out.”
In March, Xiaomi entered into an agreement to raise $5.5bn through the sale and issuance of 800 million shares.
