China Is In Love With This Smartphone Company's EVs. Its Next Stop: Europe

Xiaomi disrupted China's already-hot EV market. Now, it's eyeing the rest of the world.

Xiaomi YU7

Photo by: Kevin Williams/InsideEVs

Mack Hogan

By: Mack Hogan

Aug 19, 2025 at 12:45pm ET

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Smartphone giant Xiaomi disrupted the Chinese EV market with the SU7, a Taycan-like performance EV with incredible software and great specs.
Its first SUV, the YU7, sold out almost instantly. Clearly, Xiaomi has a hot brand.
Now, the company wants to expand sales to Europe and other markets.

Xiaomi is already crushing in the car market. The smartphone company's first car, the SU7 super-sedan, was a smash hit in China. Its software and overall user experience are so good that even Ford's CEO fell in love. Hot demand means it's still hard to get an SU7 today. Plus, the company recently begain rolling out the YU7, its first SUV. That's already a hit, too, and our man Kevin Williams loved it. So with all of that success under its belt, Xiaomi is looking for new markets to conquer.

Next up: Europe.

The company is planning to launch in Europe by 2027, as Bloomberg reported today based on the company's second-quarter earnings call. The company's automotive unit set a second-quarter record, delivering 81,000 EVs in the quarter and over 30,000 cars in July alone. It also noted a stunning response to opening up YU7 orders: 240,000 reservations in 18 hours. Plus, in April, the Xiaomi SU7 Ultra broke its own EV Nürburgring record, showing that the company is at the top of the mountain for electric performance, too.

In a recent note to investors, analysts at Morgan Stanley noted that Tesla itself had fallen behind the Chinese companies it inspired. The analysts—which, led by Adam Jonas, are generally bullish on Tesla—argue that companies like Xiaomi have surpassed it.

“We recommend investors have a look at the pictures and specs of the Xiaomi YU7, which looks like a Ferrari or Aston Martin SUV at the price of a Toyota Camry. Then ask yourself if Tesla would be better off introducing more steering-wheel-having EVs,” the analysts said in May.

More Xiaomi News

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Xiaomi YU7 First Look: Here Are Some Of The Most Clever Accessories And Features

'Tesla Is Going To Have A Hard Time': Why The Xiaomi YU7 Is Going Viral

A Xiaomi SU7 Ultra Prototype Just Annihilated Its Own Nurburgring Record

I've Seen The Future. It's A Xiaomi Store Where You Buy Smartphones And EVs

Ford's CEO Doesn't Want To Stop Driving China's Apple Car

It's a good time to be Xiaomi. But the company is not immune to the realities of the market. China's auto market is saturated, with many players struggling to stay in business. Xiaomi isn't one of them; it has demonstrated staying power in the Chinese auto market and has the electronics arm to support the business. But that does mean it will likely need global sales if it wants to continue growing.

Xiaomi YU7

The YU7 is Xiaomi's first crossover. It looks great.

Photo by: Kevin Williams/InsideEVs

Europe is a natural choice, as the country's tariff regime is gentler than the U.S.'s for Chinese EVs and almost nonexistent for hybrids. It's also a market that has a buyer base interested in high-performance EVs, and one where Chinese companies like Zeekr, BYD and Leapmotor already compete.

What do you think?

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Comments

There's no word on what products are heading to China, but I'd bet on both the SU7 and YU7 making it over. I don't know how much they'll cost, either. If I know Xiaomi, though, expect the company to undercut its rivals and push hard to outcompete them. That's what the company has done in China, and it's working so far.

Contact the author: Mack.Hogan@insideevs.com

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