Xiaomi’s bold move into electric vehicles continues

Chinese tech company Xiaomi is all set to launch its new electric SUV, the YU7, this Thursday. Many experts believe this car could directly challenge Tesla’s best-selling Model Y in China. The company had skipped the Shanghai auto show last month, leaving many fans surprised. Now, expectations are high.

The YU7 is more than just another EV

This new SUV is expected to offer smart features and design that appeal to Chinese customers. Xiaomi already entered the electric vehicle space last year with the SU7 sedan. That car managed to outsell Tesla’s Model 3 on a monthly basis. However, sales dipped after a fatal accident involving the SU7 in March.

With the YU7, Xiaomi is hoping to bounce back and win customer trust again. If it delivers on performance and safety, the YU7 could become a strong rival to Tesla in China.

More than a car: Xiaomi to launch mobile chip and phone too

At the same launch event, Xiaomi CEO Lei Jun confirmed that the company will also unveil its latest mobile chip called Xring O1. Xiaomi has invested 13.5 billion yuan ($1.87 billion) in developing this chip.

The company says it will spend at least 50 billion yuan more on chip development over the next ten years, starting in 2025. This is a major step as rivals like Huawei and Apple already use custom chips to improve their devices.

Xiaomi will also showcase its new smartphone, the Xiaomi 15S Pro, at the same event. This phone is expected to work closely with the new chip for better performance and battery life.

Why this matters for buyers and tech lovers

For car buyers in China, the YU7 brings more choice in the growing EV market. For smartphone users, Xiaomi’s chip investment means more powerful and efficient devices.

This is important because companies are now focusing more on making their own chips. This helps them build better products that work smoothly and stay secure. Xiaomi’s move puts it in the same league as other top tech brands.

Xiaomi’s long-term dream gets real

Xiaomi has tried to make its own chips since 2014. After some early setbacks, it paused those plans. But in 2021, when the company decided to build cars, it also returned to chip design.

Lei Jun said the dream of making chips is important for Xiaomi’s future. He believes this is the only way the company can become a great tech brand.

This week’s launch event will show how serious Xiaomi is about that dream. It’s not just about one SUV or one chip. It’s about building the future of smart technology in China.

Source: Reuters