Tesla Rival Xiaomi’s YU7 SUV Overtakes Model Y China Sales In January

Xiaomi Corp. (OTC:XIACF) (OTC:XIACY) outsold Tesla Inc. (NASDAQ:TSLA) in China’s electric vehicle market in January, with its YU7 SUV delivering more than double the sales of the U.S. EV maker’s Model Y, according to data released on Thursday by the China Passenger Car Association.

The YU7 recorded 37,869 deliveries during the month, compared with 16,845 for the Model Y.

The Model Y, previously December’s top seller, dropped to 20th place in January. Among new energy vehicles, it fell from first to seventh. The data, including both electric and gasoline vehicles, was released by Autohome.

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Xiaomi launched the YU7, its second electric model, in 2025. The company, known for smartphones, priced the YU7 10,000 yuan ($1,450) lower than the Model Y in China. Analysts had anticipated the YU7 would capture market share from Tesla’s best-selling Model Y.

In December, the Model Y led monthly sales, surpassing BYD Co. Ltd.’s (OTC:BYDDY) (OTC:BYDDF) Qin Plus. Xiaomi’s YU7 ranked third. Despite January’s success, Tesla has maintained stronger sales overall. For 2025, Tesla ranked fifth in China sales, while Xiaomi was tenth.

Xiaomi’s YU7 success occurred amid a slowdown in China’s electric car market. The company plans to expand internationally, targeting Europe next year.

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The shift in sales dynamics comes after a challenging year for Tesla in China. In December 2025, Tesla faced a slump in sales, marking its first annual sales decline in the country.

Meanwhile, Xiaomi’s electric vehicle division, despite a rocky start with the SU7 Ultra EV sales plummeting to under 50 units in December 2025, has gained momentum with the YU7’s success.

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Photo courtesy: Shutterstock

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