Chinese technology giant Xiaomi is intensifying competition in China’s electric vehicle (EV) market, with strong domestic demand for its models putting pressure on Tesla.
In January, Xiaomi’s YU7 SUV led retail sales in China with 37,869 units sold, more than double the 16,845 deliveries recorded by Tesla’s Model Y, according to data from the China Passenger Car Association (CPCA), News.Az reports, citing foreign media.
The YU7’s January performance accounted for 97% of Xiaomi’s total vehicle sales during the month.
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Tesla’s Model Y, which ranked as the best-selling model in December 2025, fell sharply to 20th place in January 2026. The rankings include both electric and gasoline-powered vehicles.
Xiaomi introduced the YU7 — its second electric vehicle — in June 2025, positioning it directly against Tesla’s Model Y. The company priced the YU7 lower than Tesla’s offering in China and promoted it as superior in several key aspects, including driving range per charge.
The strong January sales came despite concerns over a potential slowdown in China’s EV market amid macroeconomic uncertainty and intense competition. Xiaomi founder, chairman and CEO Lei Jun cited automotive outlet Auto Home in noting that the YU7 ranked as China’s top-selling vehicle by retail sales in January.
Meanwhile, sales of Xiaomi’s SU7 electric sedan series continued to decline as the company prepares to launch an updated version. On February 10, Lei announced that production of the first-generation SU7 had officially ended.
Overall, Xiaomi sold 39,002 EVs in January 2026, marking a 70.3% increase year over year, though down 22.3% compared with the previous month. Having sold 411,837 vehicles in 2025, the company has set a target of 550,000 EV deliveries for 2026 as it accelerates efforts to strengthen its foothold in the competitive EV market.
