Xiaomi strikes hard: Its first electric model already outpaces Tesla in China
Xiaomi wasted no time establishing itself in the highly competitive Chinese electric vehicle market. With its first model, the SU7, the Chinese brand managed to surpass the Tesla Model 3 in sales over several months—an achievement few manufacturers can claim.
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A rapid success and numbers that speak for themselves
Launched in April 2024, the Xiaomi SU7 immediately generated impressive enthusiasm. In its first few months, sales reached 30,000 units in just three months, with steady growth through the end of the year. In October, November, and December, the SU7 outpaced the Model 3 with nearly 70,000 units sold during that period compared to 52,000 for Tesla.
In January 2025, the Xiaomi SU7 continued its momentum with 22,897 units sold—almost three times more than the Model 3, which recorded only 8,009 sales. This success is largely due to an offering that perfectly meets the expectations of the Chinese market: an elegant, high-performance, and well-equipped electric sedan, all at a more attractive price than Tesla. Overall, from April 2024 to January 2025, Xiaomi sold 162,384 SU7s, surpassing the 152,748 Tesla Model 3s sold during the same period. A true achievement for a manufacturer launching its very first car model.
A serious alternative to Tesla
If Xiaomi managed to outperform Tesla with the SU7, it isn’t by chance. The brand has focused on several key advantages to attract Chinese buyers:
- A competitive price: With a starting price of around $29,640 (approximately 215,900 RMB), the SU7 is priced well below the Model 3. Even its higher-end versions remain more affordable than those from Tesla.
- Advanced technology: Xiaomi leveraged its expertise in smartphones and electronics to integrate an ultra-intuitive connected ecosystem, rivaling the onboard interfaces of top brands.
- Attractive design: Unlike Tesla models that take a minimalist approach, Xiaomi opted for a more refined aesthetic with a finish that clearly targets the high-end market.
This approach appears to be paying off, proving that an emerging manufacturer can disrupt established giants with a well-thought-out strategy.
The next challenge: Competing with the Tesla Model Y
If the SU7 has dethroned the Model 3 on its own turf, Xiaomi isn’t stopping there. In December 2024, the brand unveiled its next model: the YU7, an electric SUV aimed directly at the Tesla Model Y, the best-selling electric vehicle in China last year with 480,309 units sold. The stakes are high, as the electric SUV market is even more dynamic than that for sedans. Xiaomi is once again betting on aggressive pricing and premium features to attract an even broader audience. But matching the Model Y’s numbers will be another challenge. Tesla benefits from a well-established production process and a strong international presence, while Xiaomi remains a new player in the automotive field. Nevertheless, with its first model already surpassing Tesla in volume, the Chinese brand could very well disrupt the balance of power in the coming years.
This article explores how Xiaomi, with its first model the SU7, managed to outperform Tesla in China. By combining an attractive offering with advanced technology, the tech giant now positions itself as a serious competitor in the electric vehicle market. With the YU7 on the horizon, the battle against Tesla is just beginning.
Images: © Xiaomi / © Tesla
