In January 2026, Xiaomi’s YU7 electric SUV outsold Tesla’s Model Y in China with 37,869 units sold compared to Tesla’s 16,845. The YU7 was priced lower and boasted better driving range, aiming to compete directly with Tesla in the electric car market.

Despite an overall slowdown in China’s electric car market, Xiaomi’s YU7 saw strong sales in January. Xiaomi aims to expand its electric car ventures overseas, including into Europe next year. The company’s earlier SU7 sedan faced scrutiny following fatal accidents, prompting safety improvements in their vehicles.

Read more at CNBC: Xiaomi’s electric SUV tops China sales in January, sells twice as many as Tesla’s Model Y