Xiaomi SU7 outsells Tesla Model 3 in China
What's the story
Xiaomi's fully electric SU7 has become China's first-ever "Tesla killer," according to data from the China Passenger Car Association (CPCA). The SU7 sold 258,164 units last year, nearly 30% more than Tesla's Model 3 which managed to deliver only 200,361 units. The news marks a major milestone for China's premium electric vehicle (EV) industry and is expected to boost national pride.
Market competition
Model 3's market dominance challenged
Since its launch in China at the end of 2019, Tesla's Model 3 has dominated the premium electric sedan segment. However, this changed in 2024 with Xiaomi's SU7 overtaking it. The Shanghai Gigafactory assembles both the Model 3 and Model Y. Despite losing out to Xiaomi, Tesla's Model Y still outsold all other SUVs on the mainland in 2025, including petrol-powered ones.
Tech parity
Chinese EVs matching Tesla's technology standards
Eric Han, a senior manager at Shanghai consultancy Suolei, said that "Tesla's dominance in the premium EV segment has been eroded by its Chinese competitors." He added these companies are producing vehicles that match Tesla's technology standards but at lower prices. This trend is seen as a major boost for Chinese carmakers who are all trying to move up the value chain.