Xiaomi’s New SUV Launches to Soaring Demand, Triggers Resale Boom

Chongqing - Xiaomi’s first SUV, the YU7, recently opened for pre-orders, drawing over 289,000 in the first hour and locking in 240,000 within 18 hours. On July 1, Xiaomi announced limited-time purchase perks for the SU7, SU7 Ultra, and YU7—with the YU7 offering free upgrades like zero-gravity leather seats, a powered front trunk, lifetime use of its HAD assisted driving system, and exclusive carbon fiber features for Max trims.

Record pre-orders for Xiaomi’s YU7 spark resale frenzy

Lei Jun, Founder and CEO of Xiaomi, posted on China's social media platform Weibo on June 27, stating that the YU7's order volume "far exceeded our most optimistic expectations." When asked by a user whether the 24-hour sales figure would be disclosed, Lei replied, “No, we won’t be publishing that.”

In Xiaomi’s ordering system, a pre-order means the buyer places a refundable deposit to show purchase interest. If the buyer doesn’t confirm the order earlier, it will automatically lock after 168 hours. Once locked, the order can no longer be changed, and the deposit becomes non-refundable, signaling a stronger commitment to buy. In contrast, sales figures reflect actual vehicle deliveries, which depend on production capacity.

According to the Xiaomi Automobile App, delivery times for YU7 models vary significantly: the Standard Edition has an estimated lead time of 57 to 60 weeks; the Pro Edition, 50 to 53 weeks; and the Max Edition, 37 to 40 weeks. By comparison, Tesla’s Model Y in the Chinese market is typically delivered within 2 to 5 weeks—a stark contrast.

A report by China Securities Journal noted that the extended wait times have fueled a booming resale market for YU7 pre-orders. On a Chinese second-hand platform, Xianyu, a search for "Xiaomi YU7 order transfer" reveals a large volume of listings. Many of these orders are being sold with a markup of 5,000 to 20,000 yuan (697–2,792 USD), depending on how soon the car is expected to be delivered. The shorter the waiting time, the higher the resale premium.

Because production and delivery are scheduled based on the order locking time, early lock-ins are prioritized. As a result, most resale transactions involve fully locked orders already registered under the original buyer's name. A seller based in Ningbo told a reporter that such locked orders can only be transferred after the seller takes delivery, essentially making it a second-hand car sale. Although the buyer receives a brand-new vehicle, it is legally classified as second-hand, which could affect its resale value. 

According to Xiaomi’s official vehicle purchase agreement, the only way to reassign an order without triggering a second-hand sale is through a direct relative, such as a parent, child, or spouse.

Global buzz builds as Xiaomi’s YU7 challenges Tesla

Despite not having formally entered overseas markets, the YU7 has already garnered attention on global social media platforms. On X (formerly Twitter), users commented on the YU7’s styling similarities with luxury brands such as Ferrari and Porsche. Under Lei Jun’s post featuring a YU7 photo, one user, Atamert Yaman, wrote that the YU7 looks like a mix of Aston Martin, Ferrari, and Porsche.

Tech influencer Sawyer Merritt’s post about the YU7’s release generated over 550 replies. One user, Jeff Lutz, remarked that Xiaomi could become a serious competitor to Tesla. Another user, Iftat, praised Xiaomi’s design and expressed hope that the YU7 would be introduced to the U.S. market to offer consumers more choices.

The YU7 has been positioned as a direct competitor to Tesla’s Model Y. During the launch event, Lei presented a side-by-side comparison of the YU7 and Model Y across key categories, including space, performance, driving range, and charging time. Most notably, the YU7’s starting price is 253,500—10,000 yuan cheaper than the Model Y, which currently starts at 263,500 yuan.

Since deliveries of Xiaomi’s first car, the SU7, began in April 2024, the brand has seen a rapid rise in the Chinese auto market. In Q1 2025, SU7 deliveries reached 75,900 units, with over 28,000 units delivered in May and April.

In contrast, Tesla is experiencing growing pressure in global markets. According to the European Automobile Manufacturers Association, Tesla sold 13,863 vehicles in Europe in May 2025—a year-on-year decline of 27.9%. In the 27 EU member countries alone, sales plummeted by 40.5% to just 8,729 vehicles. Globally, Tesla’s Q1 2025 deliveries totaled 336,681 units, down 13% year-on-year.

Nevertheless, Tesla continues to push forward aggressively in advanced driver assistance systems (ADAS). On June 27 (Texas time), Tesla CEO Elon Musk posted that, for the first time, a Model Y completed a fully autonomous delivery—driving itself from the factory, through city streets and highways, directly to the customer’s home.

Xiaomi, on the other hand, is taking a more cautious approach. Although all YU7 variants come equipped with high-level assisted driving hardware, Lei did not emphasize these features at the launch event. Instead, he focused on what he described as Xiaomi's top priority: safety. The company highlighted battery safety, vehicle structure integrity, and crash protection as central to its product philosophy.

This stance is in part a response to a high-profile accident earlier this year. In March, a Xiaomi SU7 was involved in a fatal crash in Anhui Province, resulting in three deaths. The incident triggered public outcry and scrutiny of the company’s ADAS. One major concern was whether Xiaomi had overstated the capabilities of entry-level SU7 models, leading to consumer misunderstandings. The controversy also prompted Chinese regulators to tighten oversight of marketing related to intelligent driving technologies.