Beijing: Xiaomi is set to unveil its much-anticipated YU7 electric sports utility vehicle this Thursday, alongside several new tech products, including the company’s self-developed Xring O1 mobile chip and the Xiaomi 15S Pro smartphone.
The YU7 SUV, seen by analysts as a serious contender to Tesla’s Model Y in China—the world’s largest automotive market—marks Xiaomi’s continued push into the electric vehicle (EV) sector. Excitement for the model has been building since last month, when Xiaomi refrained from showcasing it at the Shanghai Auto Show, disappointing many fans.
Company founder and CEO Lei Jun confirmed on his Weibo account Monday that the YU7 will be officially launched at the event.
Xiaomi, long known for its smartphones, smart devices, and home appliances, ventured into the EV market last year with the release of its first car, the SU7 sedan. Since December, the SU7 has outpaced Tesla’s Model 3 in monthly sales. However, orders have reportedly declined following a fatal accident involving the SU7 in March.
Xiaomi’s entry into the EV arena comes amid intensifying competition in China’s smartphone market. Rivals like Huawei and Apple have ramped up efforts to develop proprietary chips, fostering more integrated hardware-software ecosystems and enhancing user experience.
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In a separate Weibo post, Lei Jun shared that Xiaomi invested 13.5 billion yuan ($1.87 billion) into the development of the Xring O1 mobile chip. He also revealed a long-term plan to invest at least 50 billion yuan in chip design over the next decade, starting in 2025.
Xiaomi first entered the chip development field in 2014 and launched its debut processor, the 28-nanometer Pengpai S1, in 2017, which featured in the Xiaomi 5C smartphone.
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Following initial setbacks, the company pivoted to simpler components such as battery management and image processing chips. However, in 2021—the same year it announced its car manufacturing plans—Xiaomi also reignited its mobile chip ambitions.
“Xiaomi has always had a chip dream because in order to become a great hard technology company, chips are a peak that must be climbed,” Lei said. “We will definitely go all out.”
