Xiaomi’s new-generation SU7 launch sparks fresh EV fight with Tesla in China

Xiaomi has officially launched its new-generation SU7 electric sedan, sparking a fresh round of competition in China's crowded EV market. Founder and CEO Lei Jun announced pricing for the smart sedan, with the standard edition starting at 219,900 yuan (US$31,900). The Pro and Max variants are priced at 249,900 yuan and 303,900 yuan respectively. While these figures are 10,000 yuan lower than pre-sale estimates, they represent a 4,000 yuan increase over the first-generation SU7 launched in 2024. Lei Jun attributed the pricing to significant improvements in vehicle configurations and rising supply chain costs, positioning the new model as a strong value proposition.

Analysts immediately noted the vehicle's competitive positioning. Citibank described the pricing as fair and suggested the model could achieve a mature monthly run-rate of 270,000 units. Citi analyst Kyna Wong stated the SU7 is 'roughly on par or slightly better than peers' in its price range and predicted it will 'marginally take some of the Tesla Model 3, Zeekr 007 and Xpeng P7 market share.' The launch intensifies competition at a time when overall EV demand in China is weakening and regulatory oversight is tightening, forcing automakers to compete fiercely on price, technology, and features to win customers.