Xiaomi officially launched its second electric vehicle, the YU7 SUV, at its “Human x Car x Home” ecosystem event on June 26. The mid-size fastback SUV is priced at 253,500 yuan (approximately 35,000 USD) for the Standard version, 279,900 yuan (roughly 38,700 USD) for the Pro, and 329,900 yuan (approximately 45,600 USD) for the Max trim. Within just 60 minutes of the order system opening, Xiaomi reported over 289,000 pre-orders, far surpassing the initial performance of its debut model, the SU7.

Despite the impressive numbers, the launch has drawn scrutiny over sales tactics and the emergence of scalpers on secondary platforms, according to a report by First Financial News. Numerous listings have appeared online, offering early YU7 orders at markups ranging from 1,000 yuan to 20,000 yuan (approximately 140 to 2,800 USD). In response, Xiaomi Auto stated that orders cannot be transferred or have their buyer details modified, emphasising that buyers should use only official channels for transactions. A Xiaomi spokesperson added that any resale must go through a second-hand vehicle transfer of ownership, reaffirming the brand’s commitment to fairness and consumer protection.

During launch night at Xiaomi’s Beijing 4S stores, sales staff used loudspeakers and chants to urge quick deposits, creating a high-pressure atmosphere. Some buyers pushed back, insisting on a test drive first and citing safety concerns from previous SU7 incidents.

Within minutes of its launch, Xiaomi announced that 200,000 YU7 units had been sold within three minutes. Resale listings—mainly for the standard variant—quickly appeared across multiple cities on various platforms. According to one seller, changing the registered buyer is only possible if the transfer is to an immediate family member, necessitating a formal ownership transfer and associated fees. Analysts noted that Xiaomi’s reported “pre-order” figures reflect intention rather than actual sales. Buyers have 168 hours after the deposit is made to finalise configurations or cancel.

To avoid a repeat of last year’s refund complaints with the SU7, Xiaomi added new clauses: once orders are locked, changes are prohibited, and deposits become non-refundable. A special inventory section for “ready-to-deliver” YU7s was also introduced on Xiaomi’s app, but sales agents cautioned that demand would likely lead most buyers to opt for custom builds.

As demand soars, Xiaomi faces production challenges. Its two existing factories each target an annual capacity of 150,000 units. A recent land acquisition of 635 million yuan (approximately 88 million USD) near its Phase 2 facility in Beijing hints at plans for a third plant to scale up manufacturing.

The YU7 features a maximum output of 690 PS, 0–100 km/h acceleration in 3.23 seconds, and a top speed of 253 km/h. The Standard version offers a range of up to 835 km, undercutting the Tesla Model Y by approximately 10,000 yuan (around 1,400 USD) at the entry-level. While other rivals, such as the Xpeng G6, Zeekr 7X, and Avatr 07, have challenged the Model Y with limited success, the YU7’s initial traction may present the first credible threat to Tesla’s dominance in China’s high-volume EV segment.