The tech world often sees companies try new things. Sometimes, these ventures just fizzle out. But then there’s Xiaomi. You know them for slick smartphones and smart home gadgets. Now, they’ve jumped into the electric car business. And they’re not just dabbling; they’ve completely rocked the car market in China. Now, their sights are firmly set on Europe.
Xiaomi launched its first electric car, the SU7, and it took China by storm. People loved its look, which reminded them of a Porsche Taycan. It also packed top-notch features and software that was super easy to use. Even the CEO of Ford was openly impressed by the car’s user experience. Demand for the SU7 was so high that it’s still tough to get your hands on one today.
The company didn’t stop there. After the SU7’s success, Xiaomi recently debuted its first electric SUV, called the YU7. This new model also became an instant hit. With two winning vehicles under its belt, Xiaomi is ready to grow beyond China. They want to become a truly global player in the car industry.
This plan for expansion was confirmed when Xiaomi announced its second-quarter earnings. According to a report by Bloomberg, the company aims to enter the European market by 2027. Their electric vehicle division shows impressive growth. They delivered a record 81,000 EVs in the second quarter. In July alone, they handed over more than 30,000 cars. The YU7 also saw an incredible response, with 240,000 reservations pouring in during just 18 hours.
Not only are Xiaomi’s EVs selling fast, but they can perform too. In April, the Xiaomi SU7 Ultra set a new record for electric vehicles on the famous Nürburgring race track. This shows that Xiaomi is serious about building powerful cars that can compete at the highest level.
A New Contender Challenges Tesla
Many investors and analysts keep a close eye on the car industry. Morgan Stanley analysts, including Adam Jonas, usually speak highly of Tesla. But in a recent message to investors, they admitted something big. They said that Tesla has fallen behind compared to the new Chinese car makers it once inspired. They specifically argued that companies like Xiaomi have now overtaken Tesla in several key areas.
The Morgan Stanley analysts stated this in May: “We recommend investors look at the images and specifications of the Xiaomi YU7. It resembles a Ferrari or Aston Martin SUV, but with the price of a Toyota Camry. Then, ask yourselves if Tesla would not be in a better position if it introduced more EV models with a conventional steering wheel.”
Xiaomi is in a great spot right now. But the company knows the car market is tough. China already has too many car makers, and many are struggling to survive. Xiaomi has a strong electronics business supporting its car efforts. This helps them stay strong. Still, to keep growing, they need to expand worldwide.
Europe is the clear choice for this next step. The taxes on imported electric cars are much lower in Europe than in the United States. Also, more and more European buyers are looking for high-performance electric cars. Other Chinese car brands like Zeekr, BYD, and Leapmotor are already selling cars there. This means European buyers are already somewhat familiar with Chinese EV brands.
We don’t have official confirmation yet on which Xiaomi models will arrive in Europe. But it’s very likely both the SU7 and YU7 will be among the first. Prices are also a mystery for now. However, based on how Xiaomi usually does business, expect them to offer very competitive prices.