Xiaomi founder Lei Jun announced on Weibo that the company’s YU7 SUV sold 37,869 units in January, rising two places from December to claim the top spot on China’s passenger‑car retail sales list compiled by AutoHome. Despite a modest month‑on‑month dip from December, the YU7 outperformed established rivals, with Geely’s Boyue L and Xingyuan in second and third place respectively.
The YU7, positioned as a mid‑to‑large “family intelligent flagship SUV,” went on sale in October 2025 with a starting price of about RMB 253,500 (roughly $35,000). It is Xiaomi Auto’s second production model after the SU7 sedan and is pitched directly against mainstream electric SUVs such as Tesla’s Model Y and Li Auto’s L series, aiming to combine Xiaomi’s consumer electronics brand strength with competitive pricing and dealer availability.
January is typically a soft month for China’s auto market, after heavy year‑end deliveries and incentives in December. That context makes the YU7’s performance notable: while Tesla’s Model Y slid to 16,845 units in January and placed 20th — a sharp reversal from its 65,874‑unit December peak — the YU7 held up relatively well, suggesting demand for Xiaomi’s SUV has some resilience beyond month‑end promotions.
The sales boost also coincides with strategic shifts inside Xiaomi Auto. Lei Jun has said the original SU7 is out of production; the model delivered more than 380,000 units from its April 2024 launch through early 2026. Xiaomi’s cumulative vehicle deliveries are now approaching 600,000, with 2025 deliveries topping 410,000 and the company setting an ambitious 2026 target of 550,000 units.
A YU7 was recently spotted on a California highway with local test plates, prompting speculation about a U.S. launch. Lei Jun dismissed immediate plans to enter the American market, suggesting the car was likely purchased by a supplier or peer for benchmarking. Still, the sighting underscores growing external interest in Xiaomi’s vehicles and feeds discussion about the firm’s longer‑term international ambitions.
Xiaomi’s January showing matters because it signals the arrival of nontraditional tech brands as meaningful players in China’s mass EV market. The company leverages an existing retail footprint, a loyal consumer base and software capabilities to sell high‑margin hardware at scale. For incumbents and foreign competitors, the YU7’s rise highlights intensifying pressure in the mid‑to‑high SUV segment and the continuing volatility of retail rankings in a market shaped by seasonal incentives, shifting subsidies and rapid new‑model launches.