Xiaomi Yu7 SUV Electrifies the Market: Pricing Strategy, Premium Push & Unprecedented Hype

The automotive world just witnessed a masterclass in anticipation. At its "Human x Car x Home" ecosystem launch event on June 26th, tech giant Xiaomi didn't just unveil its first AI glasses; it strategically revealed the long-awaited pricing for its debut SUV, the Xiaomi Yu7. This pivotal moment marks Xiaomi's aggressive entry into the competitive electric vehicle (EV) arena, executing a now-signature pricing playbook.

Xiaomi's Pricing Playbook: Hype, Reveal, Applause
Since Xiaomi announced its entry into the automobile sector, nationwide price guessing games became a staple of its marketing. Industry analysts dubbed this the "Xiaomi Pricing Trilogy": pre-launch hype raising expectations, emphasizing high specs and costs during the event, then unveiling a price lower than anticipated – triggering "nationwide cheers." While emotionally effective, post-reveal analysis often confirms it's simply a competitive, well-calculated price for the new energy car.

True to form, Lei Jun, Xiaomi's founder and CEO, spent significant stage time extolling the Xiaomi Yu7's premium features: integrated wide-body styling, a Rolls-Royce-inspired floating emblem, his personal favorite – the innovative seat drawer system, a sophisticated luxury chassis, and VGR variable steering. He reiterated the standard Xiaomi Yu7's impressive 835 km range.

Pre-empting speculation on social media, Lei Jun had previously stated the Xiaomi Yu7 wouldn't merely cost RMB 20,000-30,000 more than the SU7 sedan, attributing this to its high base configuration. "The price announced on June 26th will be seen as reasonable," he promised. He also dismissed concerns about the Xiaomi Yu7 cannibalizing SU7 sales, emphasizing sustained demand for sedans.

The Price is Right: Positioning the New Electric Vehicle
Finally, after nearly 2.5 hours, the figures flashed: the standard Xiaomi Yu7 SUV starts at RMB 253,500 – undercutting the Tesla Model Y's RMB 263,500 starting price by RMB 10,000.

This pricing provides clear market coordinates. The Xiaomi SU7 sedan starts at RMB 215,900, roughly RMB 20,000 below the Tesla Model 3 (RMB 235,500). The Xiaomi Yu7 directly targets the Model Y segment. Analyst consensus, as reported widely, predicted a Xiaomi Yu7 price range of RMB 250,000-320,000.

Domestic investment banks pinpointed the Model Y, Nio EC6, and Xpeng G7 as key rivals. Some international analysts projected monthly Xiaomi Yu7 sales could surpass 30,000 units, significantly challenging Model Y's dominance in China.

Xiaomi explicitly countered suggestions the Xiaomi Yu7 is merely a raised SU7. While both electric vehicles share the Modena platform, Xiaomi stated 90% of the Xiaomi Yu7's components were redesigned: "The Xiaomi Yu7 is an SUV meticulously crafted for drivers. It blends elegant design and high performance with outstanding luxury and spacious comfort."

Premiumization in Motion: The High-Stakes Battery Car
Lei Jun opened the event reinforcing Xiaomi's "technology-first, premium-led" strategy, underscored by a staggering RMB 200 billion R&D commitment over five years. The Xiaomi Yu7 represents a critical step in this high-end push for the new energy car market. Notably, Lei Jun consistently used the term "assisted driving" (ADAS), not "smart driving," vowing continued investment, with a major upgrade to the XLA large model expected later in 2025.

Lei Jun's personal involvement highlighted the automobile's development: he undertook two grueling 1,250 km test drives from Beijing to Shanghai. "The first was last November, the Xiaomi Yu7 still heavily camouflaged, but its comfort and quietness impressed me. The second was this February – bitterly cold, but the standard battery car's range far exceeded expectations," he shared.

Delivery & Profitability: The Next Frontiers
With pricing settled, delivery speed becomes the next major focus for potential buyers of this electric vehicle. Xiaomi offered no specific timeframe, stating: "We are preparing for mass production of the Xiaomi Yu7. We are confident in delivering vehicles to users as quickly as possible post-launch." Lei Jun has previously announced progress in ramping up capacity, raising the 2025 delivery target to 350,000 units across models.

Amid industry concerns about "disorderly competition," Xiaomi President Lu Weibing expressed no worry about the Xiaomi Yu7 impacting SU7 sales, citing overwhelming demand and long delivery waits for the sedan. He suggested the dual-model strategy mirrors Tesla's Model 3/Y dynamic once production stabilizes.

Premiumization often accelerates profitability. Lu Weibing asserted that the Xiaomi Yu7's strong product competitiveness is the core focus; profitability is the natural outcome. Lei Jun confirmed the auto division's losses are narrowing, expecting breakeven by Q3/Q4 2025. Q1 2025 results support this trajectory: revenue surged 47.4% to RMB 111.3 billion, with adjusted net profit hitting RMB 10.7 billion (up 64.5%). The SU7 sedan was April's top-selling model above RMB 200,000, with over 28,000 units delivered.

Market Frenzy: Touts, Rentals & Sky-High Day Rates
The hype transcends sales. Ahead of the launch, stores prepared for a surge. Staff confirmed Xiaomi Yu7 test drives would open for booking on June 27th, with vehicles arriving overnight in multiple colors, cautioning about potential "shared test drives" due to high demand.

Online marketplaces buzzed with activity before the official reveal. Scalpers ("touts") on second-hand platforms offered "guaranteed" early purchase slots for the Xiaomi Yu7, with fees ranging from RMB 2,000 to a staggering RMB 10,000. Rental listings also appeared, with users planning immediate purchases for leasing purposes, targeting early July delivery for both short and long-term rentals. Prices, they noted, would adjust based on market rates post-launch.

The projected rental costs are eye-watering. Short-term daily rates for the Xiaomi Yu7 SUV are widely quoted above RMB 1,000, with some platforms audaciously listing RMB 6,000 per day – far exceeding the RMB 2,000+ typically charged for a luxury performance car like a BMW M5. Platform representatives attribute this to scarcity and peak demand, predicting rates will normalize to around RMB 1,000/day as supply increases. For now, the Xiaomi Yu7 sits firmly at the zenith of automotive desirability.