Xiaomi Auto is rapidly scaling its automotive operations following a surge in demand for its new SU7 electric sedan. The company has already secured over 40,000 firm orders for the vehicle, with over 7,000 deliveries completed in just nine days since its launch on March 23rd. This success is particularly notable as it coincides with a slowdown in orders for the previously popular YU7 model.
From Hype to Diversification: Xiaomi’s Strategy Shift
Initially, Xiaomi leaned heavily on founder Lei Jun’s personal endorsement and its established “Mi Fan” base to drive early sales. However, the company recognizes that this approach is unsustainable long-term. To build a more resilient sales network, Xiaomi has hired Kong Yanshuang, a former General Manager at Tesla China, to lead automotive sales. This move signals a transition from relying on short-term hype to establishing professional, scalable sales processes.
The shift is also reflected in a broader product strategy. While the SU7 is performing well, demand for the YU7 has cooled significantly, with delivery wait times dropping from 33-56 weeks to just 7-14 weeks. Cumulative YU7 deliveries exceeded 200,000 in February, suggesting most initial orders have been fulfilled. Weekly orders, once robust, have now fallen to around 4,000 units, according to Goldman Sachs data.
Aggressive Product Pipeline for 2026
To avoid relying on a single “blockbuster” model, Xiaomi plans to launch 4-6 new vehicles in 2026. The lineup will include both fully electric and extended-range options, covering sedans, SUVs, five-seater, and seven-seater configurations, with prices ranging from approximately $29,000 to $79,700. This diversification is designed to capture a wider segment of the EV market.
Upcoming Models: A Detailed Look
- SU7 Executive Extended Version: A longer version of the SU7 targeting luxury buyers, aiming for direct competition with Audi A6L and Tesla Model S.
- SU5 B-Segment Coupe: An entry-level, affordable electric coupe priced around $29,000, designed to expand Xiaomi’s customer base.
- YU7 GT High-Performance: A dual-motor all-wheel drive performance variant boasting nearly 1,000 horsepower, targeting driving enthusiasts.
- YU5 (“Kunlun N1”): A mid-size five-seater extended-range SUV positioned against Li Auto L7 and Aito M7.
- YU7 Extended Range (“Kunlun N2”): A mid-large five-seater extended-range SUV aimed at Li Auto L8 and Aito M8 buyers.
- YU9 (“Kunlun N3”): A full-size seven-seater extended-range SUV to compete with Li Auto L9 and Aito M9.
The expansion of Xiaomi Auto’s product range is not just about increasing volume; it’s about building a sustainable business model that can compete effectively in the long term.
The company’s aggressive expansion into multiple vehicle segments reflects its ambition to become a major player in the competitive EV market, moving beyond initial hype and establishing a more mature, diversified product portfolio.
