Xiaomi puts German brands in its crosshairs

Xiaomi blew away sales expectations in 2024

New Chinese automakers have popped up like crazy over the last decade, largely thanks to subsidies from the Chinese government. Many of those new automakers fail to ever sell a vehicle, but that’s not the category Xiaomi falls into. Known as one of China’s largest electronics manufacturers, Xiaomi entered the automotive field not long ago and crushed their annual sales goal. With momentum in hand, the Chinese automaker is setting its sights on a bigger target in 2025.

Xiaomi has German brands in its crosshairs

It wasn’t long ago that German marques were a sign of prestige in China, but those days are quickly fading. Consumers have shifted to domestic options in droves, which has largely led to Volkswagen’s recent financial troubles. While Xiaomi wasn’t the leading Chinese automaker, their first vehicle exceeded 50,000 units sold in less than half an hour of launching.

The Xiaomi SU7 hit the market on 28 March 2024 and surpassed 10,000 units sold in under five minutes. The automaker’s sales continued to balloon, resulting in more than 130,000 SU7 models delivered in 2024 with just nine months on the market. On top of that, the company had more than 248,000 locked-in orders at the end of the year.

Going into 2025, Xiaomi is setting its sales goal at 350,000 EVs. If it achieves that goal, the Chinese automaker will exceed the combined 2024 EV sales in China of German automakers, including Volkswagen, BMW, and Mercedes-Benz.

The Chinese automaker’s momentum doesn’t seem to be waning. The SU7 EV continues to see sales in the five figures, with more than 20,000 examples sold in February. That marks the fifth consecutive month the SU7 has exceeded 20,000 units sold. While Xiaomi is focusing on its home market for now, the company is working on plans to sell vehicles in overseas markets. According to Xiaomi president Lu Weibing, the electronics and automotive manufacturer could begin sales in foreign markets as soon as 2027.

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Xiaomi will have two EVs in its arsenal by EOY

Currently, the Xiaomi SU7 is the only model in the Chinese automaker’s lineup. While it has a more performance-focused SU7 Ultra available as well, it’s still a sports sedan. This summer, however, Xiaomi expects to launch its second standalone vehicle. The YU7 will be an all-electric crossover designed to take on competitors like the Tesla Model Y.

The Xiaomi YU7 will arrive in rear-wheel and all-wheel drive form with a starting price around $34,500 in China. The all-new electric crossover will boast a driving range of up to 478 miles. In its dual-motor version, the YU7 is expected to boast 691 horsepower and a top speed of 157 mph. The single-motor model comes in rear-wheel drive and has a top speed of 149 mph.

Dubbed as a “Model Y killer” in China, the YU7 puts consumer customization at the forefront with a long list of optional features. Most recently, per CarNewsChina, Xiaomi’s filings revealed that the electric crossover will arrive with 26 wheel options. The Chinese automaker plans to offer its low-drag wheels in 20 different colors. Not only that, but the YU7 will also arrive with other popular optional features, including a rear spoiler, ducktail spoiler, and carbon fiber accents.

Final thoughts

Xiaomi blew away its sales expectations last year, and they clearly have no intention of slowing down. With momentum on their side, the Chinese automaker is looking to continue taking the fight to German automakers. German marques won’t go down without a fight, though. Volkswagen is gearing up for a battle on Xiaomi’s home turf. Whether you consider Xiaomi a true underdog or not, there’s no denying the electronics-turned-automotive manufacturer has a prime opportunity to put the hurt on its German competitors.