China’s domestic automakers are on a roll
Chinese automakers have set the stage for a global takeover in the coming years, and while BYD is leading the charge, Xiaomi is ramping up production to meet consumer demand. The manufacturer delivered upwards of 410,000 vehicles in 2025, and they plan on scaling up even further in 2026. By the end of the year, Xiaomi has its sights set on a goal of 550,000 vehicles delivered.
Xiaomi exceeded its original 350,000-vehicle sales goal
With more than 410,000 vehicles delivered in 2025, Xiaomi is on a hot streak. The Chinese automaker exceeded its original target of 350,000 vehicles delivered last year, with more than 50,0000 vehicles sold in December alone. That’s not too shabby for an automaker whose lineup consists of just two vehicles, the SU7 sedan and YU7 SUV, which compete with the Tesla Model 3 and Model Y respectively.
While Xiaomi announced its plans to enter the EV arena in March 2021, it wasn’t until 2024 that the tech company produced its first vehicle, the SU7. The company received nearly 90,000 orders for the electric sedan within 24 hours of its launch. The YU7 received a similar response in its initial offering, with more than 289,000 orders placed in the first hour.
Xiaomi currently offers four variations of the SU7, topped by the Ultra model, which packs three electric motors that generate upwards of 1,500 horsepower. The top-spec model took on Germany’s infamous Nürburgring track last June and produced astounding results. The production version of the SU7 Ultra completed its lap in just 7:04.957. While the Ultra model will cost you a little over $70,000, the Standard, Pro, and Max versions range from around $30,000 to $45,000.
Xiaomi
While the Xiaomi YU7 isn’t as quick as its sedan sibling, it still packs plenty of punch. The electric SUV boasts rear- and all-wheel drive setups, with the latter topping out at just shy of 700 horsepower. Similar to the SU7, the YU7 is affordably priced, starting at around $35,000 and topping out at under $50,000.
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Will Xiaomi surpass Tesla?
BYD toppling Tesla in China’s EV market marks a massive shift both domestically and in the global automotive space. If the American automaker continues to slip in the rankings, it could fall behind Xiaomi within the next few years. BYD and Xiaomi shouldn’t be the American brand’s only concern, though. There are plenty of other Chinese competitors on the market, including Zeekr, Nio, and Xpeng.
Xpeng
Like Xiaomi, December proved to be Tesla’s strongest sales month as well, with just over 97,000 vehicles sold. Overall, however, the American manufacturer’s China sales dropped by 8.5% while total global EV sales rose by more than 25%. Reports indicate that BYD sold more than 2.2 million EVs in China last year, easily topping Tesla’s 1.64 million.Â
With domestic competition on the rise and Tesla’s sales on the decline, it’s only a matter of time before Xiaomi overtakes Tesla. The automaker is expected to launch several new models in the coming year, including a refreshed SU7 sedan and an extended-range seven-seat SUV. Xiaomi plans to introduce an executive edition of the SU7 and an extended-range five-seat SUV towards the end of the year, a move that will likely boost sales.
Xiaomi
Final thoughts
Tesla’s fall to BYD is major news for the EV market, both in China and globally. Like BYD, Xiaomi plans to expand into new regions in the coming years, a move that will certainly make things even more difficult for Tesla in the long term. While it has just two years in the automotive market, Xiaomi’s vehicles have proven to be immensely popular with Chinese consumers. Frankly, with the release of several new models on the horizon, I’d be shocked if Xiaomi doesn’t exceed their 550,000-vehicle sales goal.
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