A possible Xuntian sub-brand may separate Xiaomi’s future EREV vehicles from its EV lineup. Credit: CNC Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member Xiaomi Auto is facing renewed scrutiny after founder and CEO Lei Jun revealed that a limited number of YU7 vehicles were available for immediate delivery, prompting online speculation that the SUV was losing momentum. However, available sales data and Xiaomi’s upcoming product plans suggest the company is preparing for its next growth phase rather than managing unsold inventory, reports 36kr. Fast-delivery YU7 inventory originates from cancelled and abnormal orders The controversy began after Lei Jun said some YU7 vehicles could be delivered within hours. Online commentators interpreted the availability as evidence of weak demand. Xiaomi’s vehicle ordering platform shows a different picture. The fast-delivery inventory consists primarily of completed vehicles from cancelled orders, vehicles identified by Xiaomi as abnormal transactions, and vehicles that customers were unable to take delivery of. The company also offers a separate category of “quasi-new“vehicles that suffered minor transport damage before registration and are sold with full repair disclosures. The appearance of stock vehicles is also not entirely new. In May, Xiaomi announced that some YU7 inventory units could be delivered within as little as two hours, a dramatic improvement from the model’s initial waiting periods of 33–56 weeks, depending on variant. At the time, Xiaomi attributed the shorter lead times to improved production capacity and the availability of existing-stock vehicles rather than a broad change in demand conditions. The inventory remains limited, and regular YU7 orders still carry waiting periods of roughly 6 to 9 weeks. Xiaomi YU7 sales in China. Credit: China EV DataTracker Sales normalise after launch frenzy The YU7 experienced extraordinary demand after launch, similar to the earlier SU7 sedan. As initial enthusiasm faded, deliveries declined from peak levels, fueling claims that the SUV had lost momentum. Domestic sales data show the extent of that normalisation. YU7 sales fell from 37,869 units in January 2026 to 20,196 in February, 13,558 in March, and 9,876 in April, according to China EV DataTracker. Despite the decline from launch-period highs, the model remained one of Xiaomi Auto’s core volume contributors. However, Xiaomi Auto’s broader sales performance remains substantial. Domestic sales reached 36,702 vehicles in April 2026, up 71.2% from March and representing a 2.6% market share. The company also reported deliveries exceeding 30,000 vehicles in May. Recent launches have helped diversify demand. The YU7 GT performance SUV entered the market with a starting price of USD 57,300, while the model also established a Nürburgring SUV lap record before its commercial debut. Kunlun SUVs could expand Xiaomi beyond EV enthusiasts Spy shots and industry reports indicate Xiaomi is preparing three extended-range electric SUVs under the internal Kunlun program. The vehicles are expected to target mainstream family buyers rather than performance-focused EV customers. Extended-range electric vehicle (EREV) technology combines a battery-electric drivetrain with a gasoline-powered generator, allowing longer driving range while retaining electric propulsion. This architecture addresses charging concerns in regions where fast-charging infrastructure remains uneven. Recent sightings of a camouflaged Kunlun prototype suggest Xiaomi is moving beyond its current pure-electric portfolio. Industry observers also point to Xiaomi’s registration of the “Xuntian” name, potentially signalling a separate brand dedicated to EREV models. New products arrive as Xiaomi pursues ambitious growth targets The upcoming expansion comes as Xiaomi seeks to meet its 2026 delivery target of 550,000 vehicles. Based on reported monthly figures, the company delivered roughly 140,000 to 150,000 vehicles during the first five months of the year. Financial pressure remains significant. Xiaomi previously disclosed that its automotive business lost roughly USD 5,600 per vehicle during the first quarter of 2026. At the same time, the company continues to invest heavily in product development and expanding manufacturing scale. Recent attention surrounding a SU7 Ultra fire also highlighted the scrutiny the brand faces. Xiaomi stated that battery data from the incident showed the battery pack did not fail before the fire, according to information released after an internal investigation.
