Xiaomi CEO launches cheaper SUV to rival Tesla
▼ Summary
– Xiaomi CEO Lei Jun publicly admitted the YU7 was not competitively priced against a rival during a launch event.
– He then launched a new model to address the pricing issue.
– The YU7 True Standard was unveiled at Xiaomi’s “Human x Car x Home” event on 21 May.
Most CEOs would hesitate to admit their own product isn’t priced competitively against a rival, but Lei Jun did exactly that on Wednesday evening , and then immediately unveiled a fix. During Xiaomi’s “Human x Car x Home” launch event on 21 May, the founder and CEO introduced the YU7 True Standard, a more affordable variant of the company’s electric SUV designed to take on Tesla’s Model Y.
Lei Jun candidly acknowledged that the original YU7’s pricing left it at a disadvantage compared to Tesla’s popular model. The new YU7 True Standard addresses that gap, offering a lower entry price while retaining core features. The move signals Xiaomi’s aggressive push into the competitive electric vehicle market, where it aims to capture budget-conscious buyers without sacrificing performance or technology.
The launch event highlighted Xiaomi’s broader strategy of integrating its ecosystem of smartphones, home devices, and now cars, all under one seamless user experience. By directly targeting the Tesla Model Y with a cheaper alternative, Lei Jun is betting that price sensitivity will sway consumers in a market that has seen fierce price wars among automakers.
The YU7 True Standard is now available for pre-order, with deliveries expected to begin later this year. Lei Jun’s rare admission of a pricing misstep , and his swift correction , underscores the high stakes and rapid pace of China’s EV industry.
(Source: The Next Web)
