Xiaomi Makes a Big Splash with New YU7: Under €30,000 and 643 km of Range

Xiaomi has introduced a new entry-level version of its YU7 electric SUV, called the Standard Edition, in a direct challenge to the Tesla Model Y. Priced in China at 233,500 yuan, or about €29,600, the new variant is positioned as a more affordable alternative in a segment where Tesla has long held a strong reputation. Xiaomi’s move appears aimed at widening the gap on price after the company’s top executive, Lei Jun, said the previous base version of the YU7 was not competitive enough against Tesla’s offering.

Despite the lower price, the YU7 Standard Edition is not presented as a stripped-down model. It uses a 73 kWh LFP battery supplied by CATL and claims a range of 643 km on China’s CLTC cycle. While that figure would likely translate to roughly 500 km under Europe’s WLTP testing standard, it still suggests a strong real-world driving range for an entry-level electric SUV. The vehicle is powered by a single rear-mounted electric motor producing 315 horsepower, allowing a 0 to 100 km/h acceleration time of 5.9 seconds and a top speed of 220 km/h.

Xiaomi has also equipped the YU7 Standard Edition with technology usually associated with more expensive vehicles. The model uses the company’s Chassis 2.0 platform, including air suspension, and is supported by NVIDIA DRIVE AGX Thor computing hardware. It also comes with LiDAR and millimeter-wave radar as standard, enabling semi-autonomous driving features without extra cost. That contrasts with Tesla, where certain advanced driver-assistance functions are tied to additional software packages or subscriptions.

The launch reflects Xiaomi’s effort to strengthen the YU7 lineup after early momentum began to slow. The company had recently gained attention with the high-performance YU7 GT, which set a record lap time for SUVs at the Nürburgring, but the new Standard Edition takes the opposite approach by focusing on affordability and broader market appeal. Xiaomi has effectively renamed the previous entry model as the Long Range Edition, while the new Standard Edition now sits below it in the range.

The timing is important because the Tesla Model Y remains one of the best-selling electric vehicles in China and a major benchmark for rivals. Xiaomi’s cheaper YU7 may now give undecided buyers a stronger reason to choose a domestic alternative, especially as it offers a longer claimed range and more standard equipment for less money. The Standard Edition’s arrival also adds pressure to Tesla’s pricing and feature strategy in one of the world’s most competitive EV markets.

Looking ahead, Xiaomi is reportedly preparing for an eventual European launch in 2027, which could bring the YU7 to a much wider audience. If the Standard Edition is included in that expansion, it could become a serious contender in Europe as well, where buyers are increasingly looking for electric SUVs that combine range, technology, and value.