In a significant milestone for the Chinese auto industry, Xiaomi’s SU7 has surpassed Tesla’s Model 3 in sales for the first time since Tesla’s launch in China. According to the China Passenger Car Association, Xiaomi delivered an impressive 258,164 units of its first electric vehicle (EV) in 2025, while Tesla managed to sell only 200,361 Model 3s.
Nirave Gondhia / Digital Trends
Xiaomi’s Formula for Success
The reasons behind Xiaomi’s remarkable sales performance are multifaceted. Primarily, Xiaomi has positioned the SU7 with a competitive edge by pricing it approximately 9% lower than the Model 3, putting the base variant at CNY 215,900 compared to Tesla’s CNY 235,500. Additionally, the SU7 offers a compelling 700 km CLTC range, which exceeds the Model 3’s 606 km by a noteworthy margin.
Other contributing factors include the integration of HyperOS, which enhances the user experience, and the availability of free driver-assistance features. Xiaomi’s existing smartphone ecosystem also provides a seamless transition for consumers moving into the EV market. The company’s ability to scale production efficiently to meet increasing demand in China has further solidified its presence.
To understand the significance of this shift, it’s essential to recognize that Tesla’s Model 3 has been a flagship model in the EV sector. Since its launch, it has set the standard against which many electric vehicles are measured and has played a vital role in the mainstream adoption of electric mobility.
Nirave Gondhia / Digital Trends
Since arriving in China in 2019, the Model 3 has maintained its reputation as the premier electric sedan, despite fierce competition from local startups that have attempted to entice consumers with lower prices and innovative features. However, Xiaomi’s successful entry into this market indicates a turning point.
The brand, originally recognized for its budget smartphones and high-end Android devices, has launched a vehicle that resonates with local consumers. Since the SU7’s debut in April 2024, Xiaomi has effectively tapped into the demands and preferences of the Chinese market.
Xiaomi’s achievement signals a considerable victory for Chinese automakers, demonstrating that local brands can compete on equal footing with American companies in terms of quality, scalability, and innovation—not just pricing. This shift also prompts Tesla to reassess its strategy in its largest market, as it faces renewed competition. Looking ahead, Xiaomi hints at the possibility of launching additional EV models to challenge other Tesla offerings.
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