The automotive world is still buzzing from the launch of the Xiaomi YU7 last month, which set a new record with 200,000 pre-orders in just three minutes and over 240,000 locked-in orders within 18 hours of its debut. Following this success, Xiaomi CEO Lei Jun hosted a live Q&A session on July 2nd, offering insights into the YU7’s development and addressing key questions from the public.

Addressing order volume scrutiny

Responding to questions about the authenticity of the pre-order figures, Lei Jun clarified that Xiaomi’s “cooling-off period” for orders, set at seven days, is an industry standard, though most competitors offer three days. This extended period was primarily to accommodate the high demand for test drives due to a limited number of showrooms. He acknowledged that the term “cooling-off period” implies cancellability, leading to scepticism about the initial “firm order” numbers.

To counter this, Xiaomi announced 240,000 “locked-in” orders (non-cancellable) within 18 hours of the launch. Lei Jun chose not to release further figures after 24 hours to avoid unnecessary debate, stating, “Believe what you want to believe.”

SU7 to YU7 conversion and user demographics

Lei Jun revealed that less than 15% (approximately 10%) of YU7 orders came from existing SU7 or SU7 Ultra customers, a figure significantly lower than anticipated. This, he noted, bolstered his confidence in the YU7’s standalone product strength and reputation.

The average age of YU7 buyers is 33, which is slightly older than that of SU7 owners. Female users account for 30% of orders, a 4.5% increase compared to the SU7’s initial sales period.

Notably, 52.4% of YU7 buyers are Apple users, a 4% increase from SU7, reflecting Xiaomi’s commitment to supporting the Apple ecosystem. The top three purchasing cities are Shanghai, Hangzhou, and Beijing – all strong markets for the Model Y, indicating the YU7’s direct competitiveness with Tesla’s popular SUV.

Flexible configuration and expanding network

Xiaomi will offer a limited-time opportunity for locked-in (non-ready stock) YU7 customers to modify their configurations from July 6th to July 7th. However, Lei Jun cautioned that reconfigured orders would be re-queued.

Xiaomi’s retail presence is rapidly expanding, with 335 Xiaomi Home stores across 92 cities. An additional 18 stores are planned for July, aiming to improve customer experience and reduce wait times, which have been significant due to overwhelming demand.

Delivery gift box

YU7 owners will receive a special gift box containing a baseball cap, a window breaker, sunglasses with a case, and a USB drive for the dashcam. The window breaker is an addition, as the YU7’s double-layered laminated glass, including the triangular windows, can be challenging to break in emergencies, especially for female drivers.

Product strength and innovation

Lei Jun attributed the YU7’s explosive sales to its “precise product positioning and extremely strong product power.” He highlighted several key features:

• Standard long range: The YU7 standard version boasts an 835 km (CLTC) range, a first for large-to-mid-size pure electric SUVs. The Pro and Max versions, both all-wheel drive, achieve 770 km. Independent tests by Chinese automotive media outlets Yiche and Autohome confirmed an impressive real-world range, with one test achieving 784 km.
• Chassis: All YU7 models feature continuously variable damping shock absorbers, with air suspension on Pro and Max versions. CDC and intelligent chassis systems are standard across the lineup.
• Autonomous driving: The YU7 comes standard with a 10 million clips version of advanced driver-assistance systems, powered by the latest Nvdia chip with 700 TOPS of computing power, LiDAR, and four millimetre-wave radars.
• “Skyline screen”: A visually stunning “Skyline screen” composed of three Mini LED projectors creates an immersive display.
• Safety: The YU7 incorporates 2200 MPa ultra-high-strength steel, embedded anti-collision structures in the A and B pillars, a bulletproof coating on the battery pack’s bottom plate, and 1500 MPa anti-scratch crossbeams to protect the battery.
• 800V high-voltage platform: This platform enhances charging efficiency and performance.

Pricing strategy and free offerings

The YU7’s pricing was swiftly finalised the day before the launch, despite initial concerns about exceeding the 250,000 yuan (35,000 USD) psychological barrier. Lei Jun expressed strong confidence in the product’s competitiveness, quality, and safety.

Regarding free inclusions like the zero-gravity seat in the Max version and as a launch benefit for the standard version, Lei Jun emphasised Xiaomi’s focus on the driver. Observing that 70-80% of drivers are alone in their cars, he questioned why the driver’s seat is often overlooked in favour of passenger comfort. The YU7 is designed as a “driver-centric car,” prioritising driving experience, performance, and driver comfort. The decision to include a zero-gravity driver’s seat, a rare feature, was inspired by the practicality of allowing drivers to rest comfortably without leaving their seats.

High female owner proportion and enhanced features

The 30% female ownership rate, potentially higher due to male buyers purchasing for female partners, led Xiaomi to prioritise features for women. This includes:

• Improved sun protection: Physical sunshades are available as accessories, and the Max version features a new generation EC panoramic roof with shading and heat insulation, comparable to physical sunshades.
• Enhanced safety for women: Beyond standard crash tests, Xiaomi conducted full-scenario, all-seat crash tests specifically for female drivers and passengers, exceeding industry standards.
• Optimised storage: The YU7 boasts 36 storage compartments, including a well-received magnetic tissue box holder behind the central screen, addressing a common driver frustration.
• Family and pet-friendly design: The YU7 features infant-safe materials, a “soft-wind healthy air conditioning” system, spacious rear seating (reclining to 135 degrees), and a second-row screen. A dedicated “pet mode” and a pre-reserved interface for a 4K gimbal camera for pet monitoring were also highlighted, along with a “luxury cat bag” designed with input from Xiaomi’s cat-owning employees.

Extensive testing

The SU7 has already accumulated over 10 million kilometres (6.2 million miles) in durability tests. The YU7 underwent 6.49 million kilometres (4 million miles) of real-world testing before its launch, a scale Lei Jun claims is 3 to 5 times larger than competitors. He personally drove the YU7 standard version 1300 kilometres (800 miles) from Beijing to Shanghai on a single charge (with one stop for charging), a feat that “completely shocked” him and solidified his confidence.

The YU7 recently completed a 24-hour endurance challenge, covering 3944 kilometres (2,450 miles) at high speeds, demonstrating its durability, performance, and charging capabilities. Lei Jun expressed hope that the industry would embrace such rigorous testing to drive overall progress.

Response to competitor tactics

Addressing reports of “interception tactics” by rival automakers targeting the YU7, Lei Jun stated that while he had reviewed the content, much of it was inaccurate, distorted, and contained false information. He urged competitors to focus on highlighting their own product strengths rather than resorting to “defamation or false information.”

Lei Jun also acknowledged the current long delivery wait times due to overwhelming demand and requested patience from customers. He encouraged those in urgent need of a vehicle to consider other excellent domestic new energy vehicles, such as the upcoming Xpeng G7 and Li Auto i8, and even the Tesla Model Y, which recently introduced new incentives.

SU7’s continued success and Nürburgring ambitions

Despite the YU7’s popularity, the SU7 continues to thrive. Lei Jun shared that in June, during the YU7’s most intense promotional period, SU7’s new locked-in orders reached 14,000 units, exceeding expectations. The low conversion rate from SU7 to YU7 orders further indicates the SU7’s strong appeal. Xiaomi has delivered nearly 300,000 SU7 units in 15 months.

Xiaomi has leased an office at Nürburgring, set to open next year, and has secured advertising space to demonstrate its long-term commitment.

To commemorate the record-breaking lap, Xiaomi launched a Nürburgring Limited Edition of the SU7, with only 10 units for 2025, which sold out instantly.

Future plans

Lei Jun admitted a significant shift in his mindset since entering the automotive industry. Initially, he believed hard work would suffice as a newcomer, but the high expectations from the public have created immense pressure, driving Xiaomi to work even harder.

While acknowledging the Tesla Model Y’s excellence, Lei Jun stated that Xiaomi aims to gradually approach and even surpass it in all aspects.

Regarding international expansion, Lei Jun confirmed that Xiaomi’s focus remains on fulfilling domestic orders due to the current backlog. Overseas market expansion is not expected to begin until 2027.

Finally, Lei Jun commented on Xpeng CEO He Xiaopeng’s recent Weibo post mentioning the YU7 Pro, highlighting their nearly 20-year friendship and emphasising the importance of camaraderie alongside competition in the industry. He wished Xpeng success with the upcoming G7 launch.

Source: 163