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

2026.03.20 05:50 Lei Jun says the new-generation SU7 offers strong value for money. Photo: Weibo Xiaomi’s updated SU7 electric vehicle (EV) is expected to bite into the market share of Tesla and some domestic rivals in China, as demand weakens and regulators tighten oversight. Founder and CEO Lei Jun on Thursday announced official pricing for the new-generation smart sedan, with the standard edition starting at 219,900 yuan (US$31,900) and the pro and max variants set at 249,900 yuan and 303,900 yuan, respectively. The figures are 10,000 yuan lower than pre-sale estimates, but 4,000 yuan higher than the first-generation SU7, which launched in March 2024 at 215,900 yuan. Lei said the adjustment reflected significant improvements in vehicle configurations and rising supply chain costs, adding that the new model offered strong value for money. Citibank described the pricing as fair and suggested the model’s mature monthly run-rate could return to 270,000 units, according to a note on Thursday. “When compared with competing brands in the same price range, it is roughly on par or slightly better than peers, without very obvious advantages beyond the average level,” said Citi analyst Kyna Wong. “We believe it will marginally take some of the Tesla Model 3, Zeekr 007 and Xpeng P7 market share.” Lei Jun, left, with actress Shu Qi and athlete Su Bingtian at the launch in Beijing. Photo: Reuters Xiaomi’s first-generation SU7 delivered more than 246,400 units in 2025, outselling the Tesla Model 3 to become the bestselling premium pure electric sedan priced above 200,000 yuan in China. Total deliveries reached 381,000 units before sales ended in February. Morgan Stanley, in another report, said the update was poised for success given high consumer interest and tangible feature upgrades, believing that the improvements in “smart cabin experience and safety measures” strengthened its competitive edge. The launch came as China’s new-energy vehicle sales fell 7 per cent year on yea

原文链接: 南华早报