The Xiaomi electric car project has managed to overtake Tesla in China, at least in January. Xiaomi YU7 SUV became the top-selling SUV in China last month with 37,869 units sold, which is more than twice that of Tesla with 16,845 Model Y vehicles sold in China, which was indicated by the China Passenger Car Association.
The Model Y, the highest-selling model in December, dropped to the 20th position in January. It also dropped to the seventh position among new energy vehicles, where it was previously ranked first.
The figures cover both electric and gasoline-powered vehicles and were published on late Thursday by online car sales platform Autohome. Xiaomi began to sell its second electric car model, YU7, approximately six months ago, in the summer of 2025.
The Chinese tech giant, most recognizable in terms of smartphones, has not been coy about its intention to challenge Tesla. Xiaomi introduced the car with an initial retail price that was 10000 Yuan ($1,450) lower than the Model Y in China.
The company said that the model is superior to Tesla in several crucial measurements, including driving range after one charge of the battery. Analysts last year projected that the YU7 would take market share from the Model Y, Tesla’s best-selling car in China.
The Model Y topped the monthly sales in December, surpassing the BYD budget-priced Qin Plus car. Xiaomi’s YU7 ranked third. The monthly sales numbers may fluctuate.
Although the YU7 outsold the Model Y during the month of October, the Xiaomi car was not ranked first. Tesla has so far been consistently stronger in sales.
By omitting gasoline-powered vehicles, Tesla ranked fifth in China last year, with Xiaomi in the tenth position. Throughout 2025, BYD dominated the Chinese auto market by selling more than 3 million vehicles compared to 2.6 million by Geely, according to the China Passenger Car Association.
However, the high sales of the YU7 in January were achieved in spite of a general decline in the electric car market in China in recent months. Xiaomi’s earlier SU7 sedan has also experienced scrutiny after fatal crashes involving driver-assist features and electrically-powered door handles.
Beijing has since prohibited hidden door handles, and car manufacturers have begun providing external lights that show when driver-assist is activated. Similar to the majority of Chinese manufacturers of electric cars, Xiaomi also has plans to move abroad, including to Europe, in the upcoming year.
