By Alex V 
New Xiaomi SU7+ Boasts Longer Range, Undercuts Tesla’s Model 3 in Price
Chinese tech giant Xiaomi has officially launched an upgraded version of its electric sedan, the SU7+, intensifying its challenge to Tesla’s dominance in China’s fast-growing electric vehicle (EV) market. The new Xiaomi SU7+ boasts a longer driving range than Tesla’s popular Model 3 and features aggressive pricing aimed at attracting cost-conscious Chinese consumers, setting the stage for a new round of competition among automakers.
Xiaomi Targets Tesla with Extended-Range SU7+
Xiaomi, best known for its smartphones and smart home devices, expanded into the electric vehicle sector in 2024 with the debut of its first sedan, the SU7. Building on the sedan’s initial success, the company unveiled the upgraded SU7+ this week, directly targeting Tesla’s best-selling Model 3 in China.
The new SU7+ offers a claimed 800 kilometers (approximately 500 miles) of range on a single charge under China’s CLTC testing standard, surpassing the Model 3’s official range of 713 km (443 miles). The SU7+ is also competitively priced, with Xiaomi continuing to employ its signature “value-for-money” strategy. The base model reportedly starts at 215,900 yuan (about $29,800), undercutting the Model 3 by several thousand dollars.
“We believe the combination of performance, range, and technology will redefine standards for electric vehicles, making smart mobility accessible to broader audiences,” Lei Jun, Chairman and CEO of Xiaomi, said during the launch event in Beijing.
China’s Electric Vehicle Market: Intensifying Price Wars
The launch of the Xiaomi SU7+ comes as automakers in China engage in fierce price competition to capture an increasingly discerning consumer base. Tesla, BYD, NIO, and other manufacturers have all adjusted their pricing in recent months, fueling a so-called “EV price war.”
According to China Passenger Car Association data, Tesla delivered more than 71,000 vehicles in China in April 2025, continuing its market leadership but facing growing competition from domestic upstarts like BYD and now Xiaomi. “The challenge from Xiaomi is significant,” said Bill Russo, CEO of Automobility, a Shanghai-based EV consultancy. “Xiaomi’s edge is its tech ecosystem and ability to integrate vehicles seamlessly into users’ digital lives.”
Some analysts caution, however, that range claims based on China’s CLTC standard are often more generous than global testing metrics like the EPA or WLTP. Still, the long-range offering is likely to appeal to urban Chinese drivers seeking affordable yet advanced vehicles.
Smart Features, Integration, and Ecosystem
One of Xiaomi’s strategic advantages is its extensive experience in developing consumer electronics and building a loyal customer base. The SU7+ leverages Xiaomi’s MIUI car operating system, allowing for deep integration with smartphones, smart home devices, and cloud services—features that align well with the tech-savvy Chinese market.
“Xiaomi’s real weapon may not be the car itself, but the ecosystem of connected services,” said Paul Gong, Head of Automotive Research for UBS China. “The company can offer a seamless user experience across devices, from the living room to the road.”
The sedan is equipped with autonomous driving capabilities backed by a fleet of NVIDIA Orin chips, advanced driver assistance systems, and a high-definition cockpit that channels Xiaomi’s strengths in user interface design.
Market Reactions and Consumer Demand
Initial reactions to the SU7+ launch have been enthusiastic. Social media discussion on Weibo and reports from early reservations indicate that Xiaomi’s pricing strategy and mileage numbers are compelling to younger, tech-oriented buyers. As per Xiaomi’s press materials, preorders for the original SU7 “exceeded expectations,” and the upgraded model is expected to build on that early momentum.
Auto industry observers are closely watching whether Xiaomi can sustain strong delivery numbers. The company has set a target of delivering 120,000 vehicles in 2025, an ambitious goal for a consumer electronics brand entering a saturated market.
Challenges and Future Outlook
Despite its promising debut, Xiaomi faces several hurdles. The EV industry remains capital-intensive, and established players like Tesla and BYD continue to invest heavily in autonomous driving, battery innovation, and global expansion. Brand loyalty, after-sales service, and production scalability will be crucial tests for Xiaomi.
“The real challenge will be in execution — ramping up production, ensuring quality, and providing nationwide service,” noted Zhang Xiang, a visiting professor specializing in automotive research at the North China University of Technology.
Still, Xiaomi’s entry and aggressive innovation are underscoring the shifting dynamics of the Chinese auto market, where technology companies are increasingly blurring the lines with traditional manufacturers.
Sources
- CNBC: Xiaomi takes aim at Tesla’s bestselling car in China with longer range, lower price
- China Passenger Car Association statistics
- Launch event statements (Xiaomi press materials)
- Analysis from Automobility Ltd., UBS China, and North China University of Technology
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