Tesla has maintained its position as a premier electric vehicle manufacturer on a global scale for several years. In China, the largest market for electric vehicles, Tesla has also been a dominant player. However, the US-based automaker is now encountering significant competition, particularly from Chinese electric vehicle manufacturers. Notably, BYD has emerged as a formidable rival, and a new entrant in the market, the unconventional EV brand Xiaomi, has surpassed sales of Tesla's most affordable model in China.

The Xiaomi SU7 has exceeded the sales performance of the Tesla Model 3 in the Chinese market within its inaugural year, according to data from the China Passenger Car Association (CPCA). Reports indicate that the Chinese technology company posed substantial competition to Tesla between April 2024 and January 2025.

Xiaomi ramping up competition against Tesla

Xiaomi's SU7 electric performance sedan commenced production in April 2024, achieving sales of 30,000 units within its initial three months. In April 2024 alone, the SU7 recorded sales of 7,058 units, outpacing the Tesla Model 3, which sold 5,065 units. However, during the same April to June timeframe in the previous year, the Tesla Model 3 had a significantly higher sales figure of 38,446 units in China, thereby exceeding the performance of the Xiaomi SU7. In the subsequent July to September quarter of 2024, the Tesla Model 3 continued to lead the market with 52,052 units sold, while Xiaomi reported sales of 39,790 units for the SU7 during that period.

Sales of the Xiaomi SU7 experienced a significant increase during the months of October, November, and December, surpassing those of the Model 3. In this three-month period, Tesla recorded sales of 52,241 units of the Model 3, while Xiaomi achieved sales of 69,697 units of the SU7 sedan. The breakdown of these sales includes 20,726 units in October, 23,156 units in November, and 25,815 units in December.

In January 2025, the strong demand for the Xiaomi SU7 persisted, with the technology company selling 22,897 units of the performance sedan. In contrast, Tesla managed to sell only 8,009 units of the Model 3 during the same month.

According to the China Passenger Car Association (CPCA), Xiaomi delivered a total of 162,384 units of the SU7 sedans from April 2024 to January 2025. In comparison, Tesla delivered 152,748 units of the Model 3 sedan in the same timeframe.

Xiaomi is now preparing for the introduction of its second electric vehicle, the YU7, which is set to compete directly with the Tesla Model Y.

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