How the Xiaomi YU7 just made the Tesla Model Y irrelevant

Ippolito Visconti Author Automotive
Xiaomi has proved that “outsiders” can flip the global automotive industry upside down in a matter of months.
Xiaomi YU7 and tesla model y

The Xiaomi YU7 has achieved what was once considered a tech-bro fever dream: obliterating the traditional heavyweights to become the best-selling car in China for January 2026. With a staggering 37,869 units delivered, this electric sedan from a company better known for handsets and smart home gadgets didn’t just win. It staged a total coup. The Tesla Model Y plummeted to a downright embarrassing 20th place, moving a mere 16,845 units. To put it bluntly, Xiaomi sold more than double the volume of the SUV that, until yesterday, seemed to hold a permanent lease on the top of the Chinese EV market.

The ascent of the YU7 reads like a silicon valley success story on steroids. In August 2025, it was a modest 23rd in the rankings. By September, it climbed to 14th, cracked the top five in October, hit the podium in December, and finally seized the crown in January 2026.

Xiaomi YU7

This isn’t just a lucky month; it’s a brutal verdict on the supposed invincibility of traditional industrial giants. The Chinese market has spoken, and it turns out that being able to read the digital needs of a modern driver is worth a lot more than a legacy badge and some vintage factory blueprints.

While Xiaomi grabs the headlines, Geely is busy occupying the rest of the neighborhood. With four models in the top 20, Geely is proving that local brands are the new landlords. Meanwhile, the most shocking “missing person” report comes from BYD. The supposed electric vehicle king barely managed to sneak the Fang Cheng Bao Ti7 into the 18th spot.

Xiaomi YU7

The YU7’s sales show the kind of consistency usually reserved for a hit app, peaking at over 39,000 units in December before stabilizing at the top. While Tesla struggles to maintain its rhythm in an increasingly shark-infested pond, Xiaomi has proved that “outsiders” can flip the global automotive industry upside down in a matter of months.