Just three minutes after Xiaomi’s second electric vehicle, the YU7, went on sale, more than 200,000 orders were placed. While customers can still cancel their deposits at this stage, the YU7 is already shaping up to be another strong performer for the brand.
The base model is priced at RMB 253,500 (USD 35,490) and includes limited-time offers such as free “zero-gravity” front-row seats and an electric front trunk. The Pro edition, at RMB 279,900 (USD 39,186), features an upgraded closed dual-chamber air suspension. The Max version, priced at RMB 329,900 (USD 46,186), supports a 5.2C charging rate and can recharge enough power for 620 kilometers of range in just 15 minutes.
These competitive prices reflect Xiaomi’s ambitions for the YU7, but the vehicle’s appeal extends beyond affordability.
At a time when safety is top of mind for many consumers, Xiaomi took an unusual step by subjecting the YU7 to a 24-hour endurance test, rotating drivers without changing the vehicle. The car surpassed 3,944 km, a distance previously reached by Porsche’s Taycan and Mercedes-Benz’s CLA, reinforcing Xiaomi’s efforts to meet high safety benchmarks.
Early indications suggest the YU7 could become a consistent presence in the high-end electric SUV segment, potentially trailing only Tesla’s Model Y.
Where Tesla built its following with a Silicon Valley origin story and minimalist aesthetics, Xiaomi is appealing to emotion. The YU7 reflects what the company describes as a focus on self-fulfillment. Designed with detailed features for young families, it blends function with narrative in a way that seems to resonate.
This strategy aligns with what economists call “narrative economics,” using storytelling to influence consumer choices and market dynamics.
Design breakthroughs that meet everyday practicality
Built on a product logic similar to its predecessor, the SU7, the YU7 advances Xiaomi’s design ethos in a segment where family SUVs often appear generic. At the launch, CEO Lei Jun introduced nine exterior colors, including a new “liquid gold pink,” seemingly aimed at female drivers.
Another unique detail is the inclusion of zero-gravity front seats, uncommon in a category where high-end features usually prioritize rear passengers. This signals who Xiaomi envisions as its users and what they value.
Design is now a key part of Xiaomi’s identity. In a crowded field of similar-looking EVs, the YU7 stands out, helping position the brand as premium.
Beyond design, the YU7 delivers on performance. The rear-wheel-drive version offers a CLTC-rated range of 835 km, while the all-wheel-drive model reaches 770 km. Both use an 800-volt architecture and are among the longest-range options available.
Every trim level includes standard driver assistance chips and sensors, along with Xiaomi’s in-house assisted driving system. A larger model version, called XLA, is expected later this year.
Still, Xiaomi’s assisted driving system has not yet matched the category’s leading offerings.
On safety, Lei noted the use of female crash-test dummies to simulate full-seat conditions, going beyond national standards. In addition to the endurance trial, Xiaomi ran a 24-hour high-speed test at 210 km per hour without changing the vehicle.
While Porsche and Mercedes-Benz have conducted similar trials, Xiaomi’s implementation shows measurable progress.
For Chinese families, comfort is critical, especially for long-distance trips and variable road conditions. Beginning with the RMB 279,900 Pro version, the YU7 includes dual-chamber air suspension. In comparison, the Li L7 starts at RMB 301,800 (USD 42,252), while the Denza N7 starts at RMB 289,800 (USD 40,572) with the same feature.
Xiaomi has also included small convenience details. For example, a drawer under the second-row seats stores tissues, toys, or daily essentials, targeting a specific need, particularly for female drivers who may carry sun visors or skincare items.
The YU7’s panoramic sunroof helps regulate cabin temperature through switchable shading, offering better insulation than traditional physical sunshades. Reportedly, it keeps the interior cooler even after 90 minutes in 38 degrees Celsius heat.
Selling emotion, not specs
Many Chinese automakers have entered the high-end electric SUV market, but few maintain lasting momentum.
Xpeng’s G6 briefly led with smart features and spacious interiors, reaching over 10,000 monthly sales. But interest waned as newer models like the Luxeed R7 and Zeekr 007 entered the market. Shoppers focused on specifications and price often shift quickly.
As platforms and supply chains standardize, differences among vehicles are becoming less noticeable. Competing solely on configuration and pricing may yield short-term gains, but it’s no longer a reliable path to brand loyalty.
For any automaker looking for sustained relevance, a business model based on genuine user needs is essential. This means evolving beyond functional benefits to offer emotional value—a brand story users connect with.
Tesla achieved this by becoming a symbol of innovation. Elon Musk’s ambitions in space exploration helped shape the company’s identity as more than just an automaker. Its minimalist design, performance benchmarks, and smart systems support a broader narrative: Tesla is for people who believe in the future.
Li Auto, by contrast, focused on China’s middle-class families. Its formula of “fridge, television, and big sofa” was not just about features but an understanding of what provides comfort and security.
Xiaomi’s pitch is more personal. As uncertainty grows and pressures increase, younger consumers are seeking more emotional value. Xiaomi presents a narrative of self-delight: technology that not only solves problems but offers moments of joy. The SU7 and YU7 seem aimed at users who value style, individuality, and emotional resonance.
In a June 23 Weibo post, Lei explained why the YU7 isn’t a six-seater, bucking market trends. “SUV stands for sport utility vehicle,” he wrote. “We chose to stick to the original spirit of the category and build a true sports vehicle.”
He added, “Fridges, TVs, and big sofas are important, but so is the driver’s experience.” Xiaomi is turning this philosophy into product strategy.
Design serves as an emotional amplifier. While most family SUVs prioritize practicality, Xiaomi opted for a long, sculpted front even for an EV. Few other cars at this price offer comparable visual distinctiveness. For Xiaomi, aesthetics are now central to its automotive branding.
Xiaomi’s emphasis on speed and handling also recalls its early days in smartphones, when hardware performance was key. The YU7, while a family vehicle, retains some of that spirit through its material choices and tuning.
With a dedicated customer base, Xiaomi understands it must deliver what users value most. By carrying its passion-driven approach from phones into automotives, Xiaomi has seemingly created a car that reflects its brand first, and a family SUV second.
In a market largely defined by functionality, the YU7 blends technology with emotional appeal. This may be Xiaomi’s greatest strength: beginning not with the product, but with the user, and building from there.
Still, stories need grounding. Xiaomi must provide real, visible value. Design, driving enjoyment, and integration with its broader ecosystem are promising starts. Whether these values can deliver long-term consistency remains the key test.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xu Caiyu for 36Kr.