Xiaomi SU7 overtakes Tesla Model 3 in China’s 2025 EV market, marking a major shift in the nation’s electric vehicle industry.
A major shift has occurred in China’s automotive industry, reshaping the market dynamics. Xiaomi’s first electric vehicle, the SU7, has overtaken the Tesla Model 3 in sales throughout China in 2025, according to data from the China Passenger Car Association.
Xiaomi achieved a notable milestone by delivering 258,164 SU7 units in 2025, surpassing the Tesla Model 3’s 200,361 units. This marks the first instance since Tesla entered the Chinese market that its Model 3 has been outsold by a rival brand.
Several factors have contributed to this achievement. Firstly, Xiaomi offers a starting price nearly 9 percent lower than the Model 3. In China, the base version of the Model 3 begins at 235,500 yuan, while the SU7’s entry-level model starts from 215,900 yuan. Additionally, Xiaomi holds an advantage in terms of driving range. The basic SU7 variant delivers 700 km of range under CLTC standards, compared to the 606 km provided by the Tesla Model 3.
For years, the Tesla Model 3 has served as a benchmark for electric sedans. Since 2019, it has led China’s premium electric car market, maintaining dominance despite strong pricing and feature-driven strategies from local manufacturers. However, this landscape has shifted with the emergence of powerful competitors such as Xiaomi, reflecting a transformation in consumer preferences and brand competition.
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