Xiaomi's Upcoming YU7 SUV Launch

BEIJING (Reuters) – Chinese electronics maker Xiaomi (OTC:XIACF) announced on Monday its plan to launch its first SUV, the YU7, in June or July next year as it expands into China's competitive auto market.

The news was shared on China's social media platform Weibo (NASDAQ:WB), accompanied by an image of the YU7 parked next to the company's first electric vehicle, the SU7 sedan. Both vehicles feature similar designs.

According to information from China's Ministry of Industry and Information Technology, the YU7 is a pure electric SUV with a top speed of 253 km (157 miles) per hour and will utilize batteries produced by a unit of CATL.

Xiaomi CEO Lei Jun stated his intention to disclose the YU7’s key specifications early to facilitate "more comprehensive and extensive large-scale testing" over an extended period.

Last month, Xiaomi raised its electric vehicle (EV) delivery target for the third time, now aiming for 130,000 units this year amid increasing demand.

The company entered China's crowded EV market in March with the launch of the SU7 series, which resembles a Porsche and starts at under $30,000. In October, Xiaomi revealed a luxury variant of the SU7 priced to compete with Tesla's (NASDAQ:TSLA) Model S Plaid, showcasing impressive performance with a record lap time at Germany's challenging Nürburgring track.

Xiaomi also reported a 30.5% increase in its third-quarter revenue this year, beating analysts' estimates. China's car sales experienced their fastest growth since January last month, driven by government-subsidized auto trade-ins.