Xiaomi SU7 Overtakes Tesla Model 3 in China — A Game-Changer

The “invincible” Tesla Model 3 has finally been challenged in China’s luxury EV market.
In 2025, the Xiaomi SU7, after three years on the market, surpassed the Model 3 in annual sales for the first time, delivering 258,164 units—over 50,000 more than Model 3’s 200,361 units, a 29% lead.

Foreign media have dubbed SU7 the “Model 3 killer,” and even American EV fans express interest, saying they would order immediately if Xiaomi cars launch in the U.S.

Why SU7 Wins: Price, Range, Technology

• Price: Standard SU7 starts at 215,900 RMB, about 9% lower than Model 3.
• Range: 700 km CLTC vs. Model 3’s 634 km, ~10% higher.
• Technology: Laser radar and advanced driver assistance come standard on all models, free of charge.

Xiaomi leverages its extensive ecosystem from phones and smart devices, offering buyers a highly integrated experience.

Tesla’s Counterattack and Strategy
Despite SU7’s success, Tesla is stepping up in China:

• 7-year low-interest financing: Model 3/Y down payment from 79,900 RMB, monthly 1,918 RMB; Model Y L down payment 99,900 RMB, monthly 2,947 RMB.
• Introducing budget versions of Model 3 and Model Y to lower entry barriers.

Globally, Tesla faces challenges in the U.S. and Europe but continues tech upgrades:

• 2026 Model Y now features HW4.5 driver assistance hardware, a triple-chip design for larger AI models, enhancing safety and intelligence.

In summary, Xiaomi SU7’s rise has intensified China’s luxury EV competition, forcing Tesla to respond with competitive pricing, financing, and technology upgrades.