By Jiahui Huang


Xiaomi released its new generation of SU7 electric sedan amid intensifying competition in China's auto market.

The company will launch a new generation of SU7 with new colors, interior design, and more advanced driving assistance features, among others, the chief executive of Xiaomi, Lei Jun, said in his Weibo account on Wednesday.

In a separate Weibo post of Xiaomi, the company said sales of the new generation of SU7 will begin in April. Pre-sales began on Wednesday, with the standard version priced at 229,900 yuan, equivalent to $32,919.51. The vehicle also has pro and max versions.

The new generation of SU7 will be equipped with lidar sensors to facilitate more advanced driving assistance features and added safety features with two rear side airbags.

The new product launch comes at a time when the Chinese auto industry is facing slowing demand and lower government subsidies.

"For 2026, we expect another year of intense competition with 119 new energy vehicle models expected to be launched," said Goldman Sachs analysts Tina Hou and Jenny Du in a note.

Xiaomi CEO Lei set the 2026 electric-vehicle delivery target at 550,000 units in a New Year broadcast on Jan. 3. This is below investors' expectation of between 600,000 to 700,000 units, Citi analysts said in a recent note.

Xiaomi's EV segment has witnessed rapid growth since the launch of its first EV model SU7, two years ago. In the third quarter of 2025, Xiaomi's EV business's revenue almost tripled to 28.3 billion yuan, driven by higher vehicle deliveries and selling prices.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

01-06-26 2254ET