<div id="readability-page-1">After five years of playing catch-up, China has produced a worthy “Tesla killer”, a massive achievement for the country’s premium electric vehicle (EV) makers that is set to stoke national pride. Sales of Xiaomi’s fully electric SU7 on the mainland stood at 258,164 last year, nearly 30 per cent higher than the Model 3’s deliveries of 200,361 units, according to data from the China Passenger Car Association (CPCA). Since its debut in China at the end of 2019, the Model 3, assembled at the Gigafactory 3 in Shanghai’s Lingang free-trade zone, led the country’s premium electric sedan category until 2024, despite massive efforts to unseat it by rivals, including Nio, Xpeng and IM Motors. “Tesla’s dominance in the premium EV segment has been eroded by its Chinese competitors that are able to churn out vehicles on par with its technology standards while offering them at lower prices,” said Eric Han, a senior manager at Shanghai consultancy Suolei. “Xiaomi’s success is a strong boost for Chinese carmakers, which are all trying to move up the value chain.”  Tesla’s Shanghai factory also assembles the Model Y, which outsold all other SUVs – including petrol-powered rivals – on the mainland in 2025. Chinese EV builders, led by BYD, the world’s largest EV maker, saw increased deliveries as their lower-priced cars proved popular with millions of middle and low-income drivers. Only a handful of the country’s 50-odd EV makers are profitable due to heavy spending on research and development, with a vicious price war squeezing profit margins further. Xiaomi, a smartphone vendor and EV start-up, began delivering its SU7 vehicles in March 2024. The popularity of its phones helped spur sales of the intelligent car featuring a preliminary autonomous driving system and a sophisticated digital cockpit. The basic edition of the Model 3 is priced at 235,500 yuan, 9 per cent higher than the SU7. In 2025, Tesla’s deliveries on the mainland fell 4.8 per cent from a year earlier to 625,698 units. The sales represented 4.8 per cent of the total EV sales nationwide, according to the CPCA. Tesla’s market share in China topped 16 per cent in 2020 when the Shanghai factory began producing the Model 3. That dropped to 6.9 per cent in 2024 amid mounting com­petition from home-grown firms, which developed dozens of ­premium models with intelligent features similar to those in Tesla’s cars. “Because the Model Y remains the bestselling SUV in China, it is too early to conclude Tesla cannot regain its lost ground,” said Gao Shen, an independent analyst in Shanghai, adding that domestic carmakers were either under pressure to break even or faced doubts regarding their cars’ safety and reliability. In March, three people died in an accident involving an SU7 in Tongling, Anhui province, while the vehicle’s driver assistance system was turned on. The crash prompted mainland authorities to tighten their oversight of early-stage autonomous driving technologies. In October, another accident involving an SU7 Ultra model killed a 31-year-old man who was suspected of drink driving in Chengdu, Sichuan province. According to local media reports, passers-by tried to pull him out of the burning car, but were unable to open the doors. Xiaomi founder and CEO Lei Jun said in November that the company would prioritise safety while designing and building new models. Earlier this month, Xiaomi unveiled a refreshed version of the SU7, with a range of more than 900km on a single charge, to sustain its sales momentum. Presales of the refreshed SU7 were launched at 229,900 yuan – 14,000 yuan, or 6.5 per cent, higher than the existing version. The top edition offers a driving range of 902km, compared with 830km for the existing Pro variant.</div>

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<p>Xiaomi's SU7 has become China's first electric vehicle to outsell Tesla's Model 3, with sales of 258,164 units compared to 200,361 for the Model 3 in 2024. This marks a significant achievement for Chinese EV makers, as they compete with Tesla's dominance in the premium segment. Despite challenges, including safety concerns and a price war affecting profitability, Xiaomi's success reflects the growing capabilities of domestic manufacturers. The company recently launched a refreshed SU7 model with improved range, aiming to maintain its sales momentum in the competitive EV market.</p>

Xiaomi’s SU7 becomes China’s first Tesla killer, outselling the Model 3