Xiaomi Auto

Tesla’s China sales have hit a three-year low due to intense competition from domestic EV makers like NIO, Li Auto, Xiaomi, and Leapmotor, along with an economic slowdown and resulting price war. Local brands offer innovative, affordable options, gaining market share. While Tesla awaits FSD approval, analysts emphasize model refreshes are crucial for staying competitive in China’s rapidly evolving EV market where Chinese automakers like Xiaomi, BYD and XPeng starting to impact Tesla’s sales.

Xiaomi Auto has hired Fabian Schmlz, Lamborghini’s former chief exterior designer, as Head of Exterior Design, Europe, since April 2025. Based in Germany, Schmlz’s experience includes designing the Lamborghini Temerario and contributing to Porsche models like the Taycan prototype. This appointment highlights Xiaomi’s commitment to design innovation and attracting top-tier talent to strengthen its position in the competitive EV market, particularly in Europe. His experience will allow Xiaomi to cater to European consumer preferences and aesthetics, blending them with broader technological goals.

Xiaomi Auto announced its YU7 electric vehicle will launch in July, with display models arriving at nationwide showrooms in coming weeks. The company refuted rumors of a 199,000 yuan starting price during a May 22 preview, though final pricing remains unconfirmed. Prospective buyers are directed to Xiaomi’s dedicated app for updates. The phased rollout follows a cautious market-entry strategy, avoiding reservations amid China’s competitive EV sector. Analysts note the July timing leverages summer sales cycles while sidestepping rival automakers’ Q2 earnings releases. Centralized coordination of regional deployments aligns with dealer reports anticipating late-May showroom preparations pending approvals.