Chinese tech giant Xiaomi has made a spectacular entrance into the electric vehicle (EV) market with its first sport utility vehicle, the Xiaomi YU7.The launch has been hailed as a “miraculous” moment for China’s automotive industry, reflecting both the company’s massive brand influence and the surging domestic demand for EVs..The YU7 is a sleek electric SUV designed to appeal to tech-savvy consumers seeking a blend of performance, smart features, and affordability.As a five-seater, it targets families and urban drivers looking for spaciousness without compromising on modern connectivity and safety. .Rolls-Royce does ground testing for fastest all-electric plane.Filipino electric passenger vehicles power Africa’s green mobility drive.200,000Firm orders for Xiaomi YU7 SUV secured within the first three minutes after preorders opened..Record-breaking pre-ordersWithin just one hour of opening sales, Xiaomi’s EV division announced an astonishing 289,000 pre-orders for the five-seater YU7, priced starting at approximately 253,500 yuan (about $35,000)..In the first two minutes alone, the company received 196,000 paid pre-orders and 128,000 lock-in orders, according to Xiaomi founder and CEO Lei Jun. This unprecedented response sent Xiaomi’s Hong Kong-listed shares soaring by as much as 8%, closing at a record high.Lei Jun expressed his amazement at the overwhelming customer enthusiasm, calling the moment potentially “historic” for China’s burgeoning EV sector. The YU7’s success underscores Xiaomi’s rapid transformation from a consumer electronics powerhouse into a serious contender in the automotive space.Price: From $35,000Priced competitively at around $35,000, the YU7 offers a compelling value proposition in a market increasingly crowded with domestic and international EV brands. Xiaomi’s expertise in smart device integration is expected to shine through in the vehicle’s infotainment and driver-assist systems.ChallengesXiaomi’s foray into EVs began with the launch of the SU7 model last year, signalling the company’s ambition to diversify beyond smartphones and consumer electronics. The move aligns with China’s broader economic strategy to boost domestic consumption of high-value goods, including electric vehicles. Fatal crashHowever, the journey hasn’t been without challenges. In March 2025, a fatal crash involving a Xiaomi SU7 in assisted driving mode resulted in the tragic deaths of three students. The incident cast a shadow over initial enthusiasm for intelligent driving features and prompted scrutiny of safety protocols in Xiaomi’s EV division.Despite this setback, the overwhelming pre-order numbers for the YU7 suggest strong consumer confidence in Xiaomi’s ability to innovate and improve. VariantsThe Xiaomi YU7 SUV officially launched in China on June 26, 2025, and is available for preorder immediately following the launch event. The vehicle is offered in three variants — Standard, Pro, and Max — with starting prices ranging from RMB 253,500 (about $35,360) to RMB 329,900. The YU7 directly targets the Tesla Model Y, offering a larger body size and a competitive price advantage.AvailabilityPreorders: Open now in China, requiring a refundable deposit of 5,000 yuan (approximately $700 USD) within seven days of reservation.Display locationsDisplay models have been available in 317 Xiaomi EV stores across 86 Chinese cities since June 13, 2025.As of now, there is no official confirmation of international availability or export plans; the launch and preorders are focused on the Chinese domestic market. Implications: What's nextFor Xiaomi, a high demand is a good problem to have. However, it may mean for some buyers that the high demand may push back delivery dates into next year for some buyers. There is no official information yet about availability outside China.YUy's record-breaking launch signals a shift in China’s EV landscape, where tech companies are increasingly competing alongside traditional automakers. Policy supportGood quality EVs are now available, and can longer be ignored by legal automakers at their own peril.The YU7’s success could accelerate the adoption of smart electric vehicles, especially among younger, digitally connected consumers.With government policies actively encouraging EV consumption and innovation, Xiaomi’s entry may inspire other tech giants to deepen their investments in electric mobility.As Xiaomi accelerates its EV ambitions, the YU7 stands as a testament to the company’s bold vision and the dynamic evolution of China’s electric vehicle market.