The electric vehicle market in China is experiencing a notable transformation, as domestic companies, including Xiaomi, are increasingly competing with established brands. In December 2024, the Xiaomi SU7 surpassed the Tesla Model 3 in sales, marking an important achievement for this newcomer in the EV industry.

This isn’t the first occasion that the SU7 has outsold the Model 3. Over the last nine months, Xiaomi’s electric sedan has outperformed its Tesla rival on four occasions. This could point to an increasing preference for the domestic EV, or it may indicate that the recent updates to the Model 3 haven’t had the desired effect. Despite Tesla’s strong brand recognition and established footprint in the Chinese market, it seems customers might perceive the SU7 as a more appealing option.

The Xiaomi SU7, launched in March 2024, has quickly gained popularity with its competitive pricing and impressive features. Starting at RMB 215,900 (€26,710) for the Standard version, the SU7 undercuts the Tesla Model 3’s starting price of RMB 235,500 (€29,000) by nearly 10%.

In contrast to Xiaomi, Tesla recently increased the prices of all three Model 3 variants in China, potentially contributing to its declining sales. Together with the growing competition from domestic EV makers, the price hike poses quite a challenge to Tesla’s dominance in the Chinese market.

This certainly isn’t the conclusion for Tesla. The triumph of the Xiaomi SU7 emphasizes how local brands, such as Xiaomi, utilize their insights into consumer preferences. They provide attractive products at competitive prices, creating significant pressure on international companies like Tesla.

The competition between Xiaomi and Tesla is expected to intensify with the upcoming launch of Xiaomi’s second EV model, the YU7 SUV. With the release planned for mid-2025, the YU7 will compete directly with Tesla’s Model Y, adding to Tesla’s headache.

• Also See: Xiaomi YU7 Electric SUV Spied Without Any Camouflage

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