Xiaomi”s electric vehicle (EV) division made headlines in January as its YU7 SUV topped the sales charts in China, achieving an impressive 37,869 units sold. This performance eclipsed that of Tesla”s Model Y, which managed only 16,845 deliveries, marking a significant shift in the competitive landscape of the world”s largest EV market.
The decline of the Tesla Model Y is particularly striking. Once the leader in the market, it fell from its top position in December to 20th overall in January. Among new energy vehicles, it dropped to seventh place, showcasing the challenges Tesla faces in maintaining its market share in China.
Xiaomi”s achievement is noteworthy, considering the company has delivered a total of 600,000 EVs since launching its first vehicle in early 2024, with more than 400,000 units sold in 2025 alone. The YU7, introduced in mid-2025, has become the flagship model, significantly contributing to Xiaomi”s sales momentum.
In January 2026, Xiaomi managed to sell 39,000 EVs, demonstrating its ability to thrive even amid a broader slowdown in the Chinese EV market. Many competitors have reported declining sales, making Xiaomi”s performance all the more remarkable.
Looking ahead, Xiaomi has set an ambitious sales target of 550,000 EVs for 2026, representing a projected increase of 37.5% over its 2025 figures. To achieve this goal, the company will need to sustain the strong sales momentum established in January.
The YU7″s success can be attributed to its appeal among Chinese consumers, who favor SUVs and crossovers. This trend positions Xiaomi favorably, particularly as Tesla grapples with questions surrounding its pricing strategy and product offerings in China. The recent struggles of the Model Y suggest that its latest refresh may not have resonated with buyers as expected.
As Xiaomi continues to leverage its brand recognition in consumer electronics, the company”s foray into the EV market underscores a significant transformation within the automotive landscape in China. The latest sales figures highlight the shifting preferences of consumers, potentially reshaping the competitive dynamics between established players like Tesla and rising challengers like Xiaomi.
