China’s electric vehicle (EV) market is evolving quickly. Domestic brands like Xiaomi are challenging established players such as Tesla. In December 2024, Xiaomi’s SU7 outsold Tesla’s Model 3, marking a major milestone in the competitive EV market.
A Shift in Consumer Preferences
This is not the first time the Xiaomi SU7 has surpassed the Tesla Model 3 in sales. Over the past nine months, the SU7 has outsold the Model 3 on four occasions. This trend signals a shift in consumer preferences. While Tesla enjoys strong brand recognition, Xiaomi’s repeated victories suggest that many buyers see the SU7 as a better option.
Xiaomi’s success comes from its focus on local needs. By offering affordable pricing and attractive features, Xiaomi has created an EV that resonates with Chinese buyers.
Affordable Pricing and Great Features
The Xiaomi SU7, launched in March 2024, has gained popularity for its competitive pricing and solid features. The Standard version starts at RMB 215,900 (€26,710), nearly 10% cheaper than Tesla’s Model 3, which starts at RMB 235,500 (€29,000). This price difference has made the SU7 a strong contender in a market where value matters.
Meanwhile, Tesla recently raised the prices of its Model 3 variants in China, further widening the gap between the two brands. Combined with the growing competition from domestic EV makers, this has made it harder for Tesla to maintain its position.
Xiaomi’s Consumer-First Strategy
The rise of Xiaomi’s EVs doesn’t mean Tesla is losing its place in China. However, it does show the growing power of local manufacturers. Xiaomi understands the needs of Chinese buyers and delivers high-quality, affordable EVs. This localized approach has forced international brands like Tesla to rethink their strategies.
What’s Next in the EV Battle?
The competition is set to grow in 2025, as Xiaomi prepares to launch its second EV, the YU7 SUV, in mid-2025. The YU7 will directly compete with Tesla’s Model Y, intensifying the rivalry between the two companies.
Final Thoughts
The success of the Xiaomi SU7 shows how domestic brands are reshaping China’s EV market. By focusing on affordability and consumer needs, Xiaomi is emerging as a major player in the industry. As new models like the YU7 enter the market, the battle for dominance will only heat up.
