According to data from the China Passenger Car Association, Xiaomi's YU7 SUV took the top spot in sales last month, moving an impressive 37,869 units. This figure is more than double Tesla's 16,845 Model Y vehicles sold.
The Model Y, which had been the top seller in December, dropped significantly to 20th place in January. When looking specifically at new energy vehicles, it also fell from first to seventh position during the same period.
These sales figures, which include both electric and gas-powered cars, were released late Thursday by the online car sales platform Autohome.
Xiaomi launched the YU7, its second electric car model, roughly six months ago in the summer of 2025.
The Chinese company, widely known for its smartphones, has openly stated its ambition to compete with Tesla. Xiaomi priced the YU7 strategically, launching it 10,000 yuan ($1,450) cheaper than the Model Y in China. The company also claimed its model surpassed Tesla's in key areas like driving range per charge.
Last year, analysts had predicted that the YU7 would take market share from the Model Y, which is Tesla's best-selling car in China. In December, the Model Y was indeed the top monthly seller, ahead of BYD’s more affordable Qin Plus. Xiaomi's YU7 ranked third that month.
It's worth noting that monthly sales figures can fluctuate quite a bit. While the YU7 did outsell the Model Y in October, it didn't secure the first position then. Historically, Tesla has maintained a more consistent lead in sales.
Excluding gas-powered cars, Tesla ended last year ranked fifth in China for sales, with Xiaomi coming in tenth. For the entire year of 2025, BYD led China's auto market with over 3 million vehicles sold, followed by Geely with 2.6 million, based on data from the China Passenger Car Association.
The YU7's strong sales performance in January occurred despite a recent overall slowdown in China's electric car market.
Xiaomi's earlier SU7 sedan had previously faced scrutiny due to fatal accidents linked to its driver-assist features and electrically-powered door handles. In response, Beijing has since prohibited hidden door handles, and car manufacturers have started adding external lights to indicate when driver-assist systems are active.
Like many Chinese electric car manufacturers, Xiaomi is also planning to expand its reach internationally, with intentions to enter the European market next year.
