As Xiaomi’s first car, the SU7 is clearly positioned to compete against Tesla’s Model 3. While other carmakers have also launched several so-called “Model 3 killers,” the SU7 appears to be the most successful based on data. the industry regard the Xiaomi SU7 as the “true Model 3 killer.”
Xiaomi SU7
In fact, the intense competition between these two models was apparent from their pricing strategies. Reportedly, when deciding on the final pricing for the SU7, Xiaomi CEO Lei Jun referenced the Model 3, acknowledging Tesla as an industry pioneer and benchmark. Xiaomi opted to “cut 30,000 yuan as a gesture of respect.” However, Lei Jun admitted that the SU7’s starting price of 215,900 yuan is being sold at a loss, and even the top-tier version at 299,900 yuan is priced at a “bleeding-edge cost.”
According to data, from January to November this year, the revamped Tesla Model 3 achieved total insured sales of 155,747 units, with an average of 14,158 units per month. From April to November, the Xiaomi SU7 recorded total insured sales of 113,656 units, averaging 14,207 units per month. In November alone, the Xiaomi SU7 achieved insured sales of 23,156 units and is expected to maintain monthly averages exceeding 20,000 units over the long term.
Tesla Model 3
Some bloggers have analyzed that the Xiaomi SU7’s only true rival is the Tesla Model 3. Looking back, they argue that the only real “Model 3 killer” is the Xiaomi SU7. Media outlets have echoed this sentiment, declaring the Xiaomi SU7 as the sole “true Model 3 killer” in the first half of the year.
The aforementioned blogger further commented on the trending topic of “six major factions besieging Bright Summit” (referring to several models targeting Tesla’s Model Y). These models offer slightly better configurations than the Model Y at slightly lower prices. But does this strategy work? The blogger believes it does not. From their perspective, if a product is designed merely as an alternative to the Model Y by replicating its approach, it will never truly “kill” the Model Y.
So, will Xiaomi’s YU7, set to launch in June or July next year, become the “true Model Y killer”? It seems that only sales figures will provide the answer.
