SHANGHAI — Xiaomi Corporation showed off a new sport utility vehicle (SUV) it plans to sell around the summer of 2025, intensifying an effort to take on Tesla Incorporated and BYD (Build Your Dreams) Company in the world's biggest electric vehicle (EV) arena.
Billionaire founder Lei Jun unveiled the YU7, a vehicle like Tesla's Model Y, in a Weibo post. The five-metre-long car is a pure electric SUV, fitted with a nickel-cobalt-manganese battery to be made by Contemporary Amperex Technology Company Limited. The motor will have a peak power of 220kW or 288kW, according to a separate notice from China's Ministry of Industry and Information Technology.
An SUV would mark a big expansion of Xiaomi's US$10 billion EV endeavour, spearheaded personally by Lei. The company is trying to reduce its reliance on a volatile smartphone market dominated globally by Apple Incorporated, though with EVs it is getting into a crowded arena and taking on established rivals Tesla and BYD.
It is unclear what specifications and pricing Xiaomi envisions for the SUV — a type of larger vehicle gaining in popularity across China. But the plan could prop up Xiaomi's stock as it takes shape.
Citigroup analysts including Kyna Wong held out the possibility that Xiaomi might exceed 2025 shipment estimates on the strength of the new model.