Xiaomi’s electric vehicle sales in China surpassed Tesla’s in October 2025, signaling a strong shift in the competitive landscape of the Chinese EV market. Xiaomi sold 48,654 EV units, led by its popular YU7 SUV and SU7 Sedan, while Tesla’s sales dropped to 26,006 units, Tesla’s lowest in three years in the Chinese market.
This achievement by Xiaomi highlights its rapid growth and effective production focus despite a slowing overall Chinese auto market.
Xiaomi’s rise in EV sales is primarily driven by the YU7 SUV, which accounted for nearly 70% of its October deliveries. Its sales jumped over 50% from the previous month, reflecting strong consumer demand and Xiaomi’s strategy to allocate more factory resources to the YU7.
Competing directly with Tesla’s Model Y, the YU7 has rapidly gained market traction, confirming Xiaomi’s promising foothold in the EV sector since its 2024 debut.
In contrast, Tesla continued to struggle with an aging lineup and less impactful price cuts, contributing to its retail sales slump in China during October.
Additionally, Tesla’s export volumes from China increased, but domestic sales remained weak.
The broader Chinese EV market saw a slight decline in growth momentum in October due to the expiration of government subsidies and incentives.
Even the top EV manufacturer BYD experienced a year-on-year sales decline.
However, the rising market share of newcomers like Xiaomi underscores evolving competition dynamics where innovation, production flexibility, and targeted products make a significant difference.
