In one of the most important developments in the Chinese auto industry, Xiaomi’s SU7 sold more than Tesla’s Model 3 in 2025. The information comes from the China Passenger Car Association (via scmp.com).
The Chinese smartphone maker delivered 258,164 units of its first electric vehicle. Meanwhile, Tesla sold just 200,361 Model 3s, marking the first time since Tesla launched in China that another brand has overtaken the company in the world’s largest electric vehicle market.
Xiaomi’s winning formula
There are a few reasons for this. First, Xiaomi undercut the price of the Model 3 by about 9% (CNY 235,500 versus CNY 215,900 for the base variant). The Baseoine variant of the SU7 offers a CLTC range of 700 km, which is higher than the Model 3’s 606 km.
Additionally, HyperOS integration, free driver assistance features, smartphone ecosystem, and the ability to quickly scale up production to meet increasing demand from Chinese buyers could be some of the reasons for the major market shift.
To give you some perspective, Tesla’s Model 3 was one of the most popular electric cars of all time. For years it has been a benchmark against which other electric vehicles are measured; It has also helped boost mainstream adoption of electric vehicles.
In China, the Model 3 has held the premium electric sedan crown since its launch in 2019, despite attempts by several local EV startups to launch models with aggressive pricing, flashy features and more frequent updates than Tesla.
However, Xiaomi seems to have cracked the Chinese electric vehicle market. A brand best known for budget smartphones and Android flagships has created something that local buyers not only appreciate but also embrace, and it all happened after the SU7 launched in China in April 2024.
Xiaomi’s success is a big win for Chinese automakers. This proves that local brands can compete with the American giants on both quality and scale, not just price. It’s a sign for Tesla to strengthen its EV offerings in its largest market. In the future, Xiaomi could launch new electric vehicles that can compete with other popular Tesla models.
