Xiaomi SUV "is late but arrives eventually".

We've been waiting for a long time for this batch of new car announcements from the Ministry of Industry and Information Technology.

Just when everyone thought the automotive industry was about to wrap up, Xiaomi made a big splash again, just like last year, igniting the automotive scene at the end of the year and reclaiming the top spot on the internet.

In the newly released 69th batch of the "New Energy Vehicle Model Catalog," Xiaomi's first SUV stands out prominently. Almost simultaneously, Xiaomi Automobile officially announced its second model and its name—YU7.

(Image from the Ministry of Industry and Information Technology)

Unfortunately, the refreshed Tesla Model Y does not seem to appear in this new car catalog.

Announcing the new car so early, Xiaomi's founder, chairman, and CEO Lei Jun said that they hope to remove the heavy camouflage from the YU7 test vehicles as soon as possible, which will help them conduct more comprehensive and detailed large-scale testing to ensure product quality and create better products.

The official also released an important piece of news: Xiaomi YU7 is expected to be officially launched in June or July next year. That means the new car will be unveiled earlier, and Electric Car News speculates that the timing could be during the SU7 Ultra launch event.

SUVs target a more mainstream consumer group, which means Xiaomi YU7 could potentially achieve even greater success than SU7.

Without further ado, let's take a look at the car.

"The first Ferrari for young people" has arrived

Before Xiaomi officially announced the YU7, we had already seen many road test spy shots. As expected, it doesn't resemble a Porsche Cayenne but rather has a striking resemblance to the Ferrari Purosangue. Electric Car News showed the new car images to friends around, and while some criticized the raised rear end, most responses were very positive.

As for why it's called "YU," ChatGPT speculated it stands for "Youth Ultimate" and "Your Utility." Electric Car News believes the former is closer to the official explanation.

From the images released by the Ministry of Industry and Information Technology and Xiaomi Automobile, it can be seen that Xiaomi YU7 retains a similar body proportion to the SU7, with the front compartment and front seats occupying a large portion of the wheelbase length, making the rear seats appear relatively shorter. It is expected to come with electric sunshades, addressing the headroom issue criticized in the SU7's rear seats.

The new car's dimensions are 4999/1996/1600mm, with a wheelbase of 3000mm and a curb weight of 2.4 tons. Upon closer inspection, the YU7 includes a "nostalgic" feature: the semi-hidden door handles on the SU7 have been removed and replaced with fully hidden door handles, likely due to considerations for aerodynamic drag.

(Image from the Ministry of Industry and Information Technology)

Also considering aerodynamic drag, the air outlet design above the car's front end is called an "air bridge" in automotive terms, aimed at further optimizing the vehicle's aerodynamic performance and reducing drag. Since SUVs have a larger frontal area, Xiaomi naturally seeks to "fine-tune" details elsewhere.

Currently announced is Xiaomi YU7's dual-motor version, with front and rear motor powers of 220kW and 288kW, respectively, totaling nearly 700 horsepower in a four-wheel-drive configuration. Besides emphasizing the comfort provided by an SUV, it also inherits top-tier handling genes. According to Xiaomi Automobile's originally exposed product plan, the YU7 will likely only be available with pure electric power, disappointing those hoping for an extended-range version.

Moreover, high-level autonomous driving hardware is not absent. It is foreseeable that when Xiaomi YU7 is launched, mature Xiaomi high-level autonomous driving will also be delivered.

The interior design remains a mystery, but combining Xiaomi Automobile Technology Co., Ltd.'s patents applied for in April last year and recent road test spy shots, Xiaomi YU7's center console may differ significantly from that of the SU7, featuring a far-end display spanning the entire console. Currently, a similar solution is only available in Avitar models. For reference, the far-end display should present necessary information cards and vehicle status, with software support for custom card layouts.

Without much information, Xiaomi YU7's appearance should be enough to attract many Mi Fans and pure electric vehicle enthusiasts to place firm orders. The market clearly has high expectations, and at least for consumers who value practicality but are also fond of Xiaomi Automobiles, there's no need to hesitate between alternatives.

However, this also means Xiaomi's SUV strategy will likely keep competitors up at night.

Xiaomi is happy, but Tesla is in trouble

Electric Car News believes Xiaomi's first SUV will form a "double-edged sword" duo with the SU7, priced affordably. Considering SUVs cost more to produce than sedans, the starting price is expected to be slightly higher than the Xiaomi SU7, roughly between RMB 220,000 and RMB 240,000.

This price range is where competition in the high-end pure electric vehicle market is fiercest, with numerous pure electric SUVs encircling and challenging the sales benchmark, Tesla Model Y, much like a "siege on Guangmingding." Many pure electric SUVs have achieved notable results, with the Zeekr 007 delivering over 20,000 units in 50 days after its launch and the IMAX R7 selling 8,983 units in November, becoming the sales mainstay of their respective brands.

It's worth mentioning that the extended-range version of the IMAX R7 was also recently announced, appealing to both electric and gasoline vehicle consumers.

As the champion, Tesla Model Y's sales have consistently dominated, with 44,576 units sold in November. Electric Car News believes it's not that competitors are weak but rather that Tesla has yet to establish market recognition. Xiaomi, with its strong brand influence and market recognition from its 3C background, undoubtedly contributed to the success of the SU7.

(Image from Xiaomi Automobile)

YU7 and Model Y have similar positioning and will likely target overlapping consumer groups. It's not to say YU7 will completely outperform Model Y, but it is certainly a product that can genuinely impact Tesla's sales position.

Moreover, the refreshed Tesla Model Y likely only involves a new design and updated autonomous driving hardware, with overall product capabilities remaining the same. In contrast, the arrival of YU7 is more surprising. Additionally, Tesla's FSD domestic version has made little substantial progress, and while V13's performance is impressive, it cannot be fully utilized in China, putting Tesla's autonomous driving technology one step behind Xiaomi's.

One of the few hopes lies in Tesla's other new model, Model Q. At an investment meeting hosted by Travis Axelrod, Tesla's head of investor relations, Tesla officially announced that Model Q will be launched in the first half of next year, with a subsidized price below USD 30,000. Additionally, Tesla plans to launch a three-row, long-wheelbase version of the Model Y in the Chinese market.

It's surprising how well Xiaomi timed its announcement. Just as the world was anticipating the refreshed Model Y, Xiaomi directly unveiled its second model, stealing the spotlight. In terms of influence, Xiaomi YU7 has won at the starting line.

Another hit is on the way

As mentioned earlier, Xiaomi YU7's launch is scheduled for June-July next year, coinciding with the commissioning of Xiaomi Automobile's second-phase factory.

Honestly, Xiaomi's second model has raised expectations, but people are more concerned about whether Xiaomi Automobile's production capacity can keep up. Currently, Xiaomi's first-phase factory is already operating beyond capacity, with monthly deliveries exceeding 20,000 units, pushing the factory's limits. Xiaomi SU7's weekly orders remain around 6,000, and delivery remains a challenge.

This explains why Xiaomi YU7 chose mid-next year as its launch timing, possibly waiting for the second-phase factory to come online. By then, Xiaomi Automobile's annual production capacity will reach 300,000 units.

Car buyers Everyone hopes that the new car can be delivered as soon as possible ， Delaying for too long will significantly consume market expectations 。 Automotive industry production capacity takes the lead ， in any case ，YU7 It should not be implemented before the second phase factory is put into operation 。

The competition in the new energy SUV market is fierce, and the field is already crowded. Ideally, Xiaomi YU7, scheduled to launch next year, has missed the "first taste." To gain a late-mover advantage, brand power, practicality, and differentiation are essential. If it were a pure family SUV similar to the Lixiang L6 or AITO Askey M7, it might not bode well for Xiaomi. While YU7 might slightly lag in spatial attributes compared to models in the same price range, this approach has a more positive impact on strengthening the brand's identity.

Xiaomi SU7's sales prove that versatility and practicality are not the only factors in the market; a focus on handling and personalized design can also gain market recognition. The second model aims to solidify Xiaomi Automobile's brand identity and attract more potential consumers through the SUV form factor. Undoubtedly, there's a high likelihood that YU7 will replicate the sales success of SU7.

Just recently, Xiaomi faced criticism for being an "assembler without core technology." Lei Jun responded promptly, stating that Xiaomi's factory is one of the most automated and self-developed production lines. Not only is there pressure to sell cars, but Xiaomi also has to withstand various external pressures and criticisms. For a brand new to the automotive industry, every step is challenging.

The top spots in the future automotive industry will go to well-prepared brands. Electric Car News believes Xiaomi and Lei Jun have such confidence.

Source: Lei Technology