According to an article from CarNewsChina, Xiaomi’s electric-SUV model YU7 delivered an impressive performance in October in China, outpacing the Tesla Model Y in domestic wholesale volumes. The achievement underscores just how quickly the young automaker is ramping up production and capturing market momentum.
What the Numbers Show
In October 2025, the Xiaomi YU7 accounted for 33,662 units of the total 48,654 vehicles that Xiaomi Auto delivered in the month (roughly 69 per cent of the company’s total).
By comparison, Tesla’s domestic China-market deliveries for the same period were around 26,000 units, marking a remarkable moment where Xiaomi’s YU7 overtook the Model Y in China.
Why This Matters and What It Means
For Xiaomi, this milestone isn’t just about a strong month — it signals the company’s ability to scale its manufacturing, align with consumer demand, and challenge established EV makers. However, Xiaomi’s success comes amid production constraints: for example, the YU7 faces delivery lead times of 32–38 weeks in China as Xiaomi prioritises capacity toward that model.
For Tesla, it suggests real pressure in the world’s biggest EV market: the Model Y has lost traction, and that may echo beyond China into global operations.
What to Watch
While Xiaomi’s YU7 has taken the spotlight for now, several questions remain: Will Xiaomi sustain this momentum once capacity normalises? Can it expand into export markets and build the necessary after-sales and service infrastructure? And for Tesla, how quickly can it respond to intensifying competition from China’s home-grown EV brands? Furthermore, the sustainability of Xiaomi’s pricing strategy and whether it can maintain quality, profitability and reliability at scale will be key to watch.
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FAQ
What is the Xiaomi YU7?
The YU7 is Xiaomi Auto’s electric SUV, launched mid-2025, targeting the mid-sized EV segment and positioned directly against Tesla’s Model Y in China.
Why is the October sales milestone significant?
Because for the first time, the YU7’s monthly sales in China exceeded those of the Model Y in that market — a major achievement given Tesla’s prior dominance.
Are those figures global or just China?
The numbers cited relate to China’s domestic market. They reflect domestic wholesale volumes for October 2025.
Does this mean Tesla is failing globally?
Not necessarily. The figures highlight Tesla’s weakened position in China, but global markets and export volumes may tell a different story. Still, the competitive setback is meaningful.
What challenges does Xiaomi face next?
Key challenges include scaling production without compromising quality, reducing delivery lead times, supporting customers outside China as they expand, and maintaining profitability in a highly competitive EV market.
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