- $1810 (+8.25%) Xiaomi's YU7 SUV is priced 4% below Tesla's Model Y in China
- YU7 orders reach 200,000 in 3 minutes
- The range of the YU7 is up to 835 km, compared to up to 719 km for the Model Y
Chinese electric car and smartphone maker Xiaomi on Thursday priced its new YU7 electric SUV at 253,500 yuan, almost 4 percent lower than Tesla's Model Y, stepping up the challenge for the US company in the world's largest car market.
The base model of the YU7 costs 10,000 yuan less than the starting price of Tesla's Model Y in China, while the premium models YU7 Pro and YU7 Max cost 279,900 and 329,900 yuan respectively.
Xiaomi began accepting orders for all three models on Thursday night, with the number of orders reaching 200,000 within 3 minutes of the sales launch at 10 p.m. (1400 GMT)
The Model Y, which was the best-selling SUV in China in May, starts at 263,500 yuan in China.
Xiaomi said it will work with BYD, GAC Toyota and Zhengzhou Nissan to build an ecosystem that connects people, homes and cars.
The CEO and founder of Xiaomi, Lei Jun, has said he wants the YU7 to challenge the Model Y, and analysts say it has the potential to be successful. Other competitors include the 7X from Zeekr and the L6 from Li Auto.
"The YU7 will be an early test of whether Xiaomi can broaden its appeal beyond early adopters and tech enthusiasts to become a serious player in the mass-market EV segment," said Rosalie Chen, senior analyst at Third Bridge.
The YU7 has a range of up to 835 km (519 miles) per charge, compared to up to 719 km for the redesigned Model Y, which was unveiled in January.
The YU7 is Xiaomi's second car since the Beijing-based company entered the automotive sector last year with the SU7, a sporty electric sedan inspired by Porsche's design and priced below Tesla's Model 3. Since December, the SU7 has outperformed Tesla's Model 3 in China on a monthly basis.
The SU7's success is accelerating the company's EV lineup despite strong competition in the Chinese car market.
In March, Xiaomi raised its target for electric car deliveries this year to 350,000 units from an earlier forecast of 300,000.
The company has secured a plot of land in Beijing near its existing car factory for 635 million yuan ($88 million), which it plans to use for a smart connected car and component project.
Lei said in June that he expected Xiaomi's car business to become profitable in the second half of the year.
