Key Points Sales of Xiaomi's YU7 SUV were twice that of Tesla's Model Y in China in January. The Chinese company started selling the YU7 roughly half a year ago. Xiaomi plans to expand overseas despite safety scrutiny. Chinese smartphone company Xiaomi launched its YU7 electric SUV in summer 2025, taking direct aim at Tesla's Model Y. Sopa Images | Lightrocket | Getty Images 's electric car venture has succeeded in dethroning Tesla in China, at least in January. The Xiaomi YU7 SUV ranked first in China by sales last month, with 37,869 units sold, twice as many as Tesla's 16,845 Model Y vehicles, according to data from the China Passenger Car Association. The Model Y, which was the best-selling model in December, plunged to 20th place in January. Among new energy vehicles, it also fell from the first position to seventh over the same period. The figures include both electric and gasoline-powered vehicles and were published late Thursday by online car sales platform Autohome. Xiaomi started selling the YU7, its second electric car model, roughly half a year ago in the summer of 2025. The Chinese company, best known for its smartphones, hasn't been shy about its aim to take on Tesla. Xiaomi launched the car at a starting price that was 10,000 yuan ($1,450) below the Model Y in China. The company claimed the model beat Tesla on key metrics such as driving range on a single battery charge. watch now