Xiaomi challenges auto giants: goal for 2025 is to overtake German brands

After its stunning success in 2024, Xiaomi Xiaomi -a well-known Chinese company that started out as an electronics manufacturer-now has officially set its sights on dominating the auto industry, and its next target is German brands. The brand plans to surpass Volkswagen, BMW and Mercedes-Benz in terms of electric vehicle sales in China in 2025.
Breakthrough to 2024: more than 130,000 SU7s sold in nine months
The debut Xiaomi SU7 sedan hit the market on March 28, 2024, and immediately broke records:
- 10,000 cars sold in the first 5 minutes,
- 50,000 orders in less than half an hour,
- 130,000 vehicles delivered within a year,
- 248,000 confirmed orders by the end of 2024.
And this is despite the fact that the model has only been on sale for nine months. For five consecutive months, the SU7 has consistently sold more than 20,000 units per month.

New YU7 crossover: “Model Y killer” this summer
In the summer of 2025, Xiaomi will unveil the second model in its lineup – the YU7 electric crossover, which is aimed at competing with the Tesla Model Y.
- Power reserve – up to 770 kilometers (478 miles)
- Power (twin-engine version) – up to 691 hp
- Maximum speed – 253 km/h
- Rear and all-wheel drive
- Price in China – from $34,500

In addition to its impressive performance, the YU7 will offer buyers unusual flexibility in configuration:
- 26 aerodynamic disk options
- 20 wheel colors
- two types of spoilers (classic and duck tail)
- Carbon fiber elements and other options
German Offensive
Xiaomi’s sales could reach 350,000 electric cars in 2025, according to the company’s forecasts. If the target is reached, Xiaomi will overtake the combined sales of electric cars from Volkswagen, BMW and Mercedes-Benz in China for the first time. That would send a strong signal to the traditional auto giants, whose position in the world’s largest car market has already begun to weaken.
And it would send a strong signal to the traditional auto giants, whose position in the world’s largest car market has already begun to weaken.

It is symbolic that until recently, German brands were considered the standard of prestige in China, but today more and more consumers are choosing local manufacturers -fast, tech-savvy and focused on the digital ecosystem. Xiaomi, with its roots in electronics, fits in perfectly with this demand.
And Xiaomi, with its roots in electronics, fits in perfectly with this demand.
Plans for Export
For now, Xiaomi is focused on the domestic market, but President Lu Weibin said that an international launch will take place no later than 2027. Given the brand’s potential and ability to scale, the European and U.S. markets could be the next arena of competition.

Forward Without Brakes
Xiaomi didn’t just announce itself – it broke into the auto industry with a mighty move, demonstrating the startup’s aggression and the tech giant’s ambition. German automakers are already gearing up for the fight, especially Volkswagen, which is looking to regain a foothold in China.

But now it won’t just be about names, it will be about innovation, flexibility and understanding the needs of a new generation of drivers. And that’s where Xiaomi has the best chance of coming out ahead.