Xiaomi YU7 Emerges as China’s No.1 Car in January, Tesla Model Y Struggles

Xiaomi has delivered one of the biggest surprises in the global auto industry, with its electric crossover YU7 emerging as the best-selling car in China in January, beating all rivals across powertrains. The achievement puts Xiaomi ahead of industry heavyweights, including Tesla, whose Model Y slipped sharply in the domestic rankings.

Xiaomi YU7 Tops China Car Sales Rankings in January

The Xiaomi YU7 confirmed its rising dominance by securing the top spot in China’s overall car sales rankings in January, regardless of powertrain type. The electric crossover recorded 37,869 units sold during the month, making it the best-selling car in the country.

In contrast, its closest rival, the Tesla Model Y, ranked 20th, with sales of 16,845 units, less than half of what the YU7 achieved.

January is traditionally a slow month for car sales in China due to seasonal factors, but the YU7 managed to maintain momentum while many competitors saw sharp declines.

Xiaomi’s Rapid Rise in the Automotive Industry

Xiaomi has emerged as one of the most unexpected disruptors in the automotive sector. The consumer electronics giant launched its first-ever car in 2023, the SU7 electric sedan, which quickly climbed China’s sales charts and surpassed the Tesla Model 3.

Building on that success, Xiaomi introduced its second EV, the YU7 electric crossover, positioning it directly against the Tesla Model Y. The strategy paid off far sooner than many expected.

Tesla Model Y Faces One of Its Weakest Months in China

The Tesla Model Y, long a dominant force in China’s EV market, experienced a difficult January. With 16,845 units sold, it barely secured a place in the Top 20.

Tesla supporters noted that the company traditionally prioritises exports in the first month of every quarter. This was reflected in Tesla’s January export numbers, with a record 50,644 Model 3 and Model Y vehicles exported, the second-highest export figure in the company’s history.

However, even when combining domestic sales and exports, the Model Y recorded a total of 38,916 units in January—only marginally higher than the Xiaomi YU7.

Diverging Sales Trends Raise Red Flags for Tesla

While Tesla’s January performance can partly be explained by export strategy, the broader trend is more concerning. The Model Y’s domestic sales trajectory in China has been declining, whereas the Xiaomi YU7 continues to gain strength month after month.

This contrast highlights a shift in consumer preference toward newer domestic EV brands offering competitive technology, pricing, and features.

Xiaomi YU7’s Steady Climb to the Top

Ranking Progress From August 2025 to January 2026

The Xiaomi YU7’s rise has been gradual but consistent:

• September 2025: 14th

• Following months: 5th, 6th, and 3rd

• January 2026: 1st place overall

January marked the first time the YU7 claimed the top position, outperforming all other vehicles sold in China, including combustion-engine models.

Monthly Sales Performance Shows Strong Resilience

In absolute terms, Xiaomi YU7 sales remained remarkably stable:

• October 2025: 33,662 units

• November 2025: 33,729 units

• December 2025: 39,089 units

• January 2026: 37,869 units

A decline of just 1,220 units in a typically weak month underlines the YU7’s strong market acceptance and resilience.

This performance sets the stage for a strong 2026, aligning with earlier predictions.

YU7 GT Launch to Strengthen Xiaomi’s Line-up

Xiaomi is further consolidating its EV position with the introduction of the YU7 GT, a sportier variant designed to act as a halo model for the brand. The new version is expected to enhance brand appeal while supporting sustained sales momentum.

BYD and Tesla Shift Focus to Overseas Markets

January sales data also revealed a notable shift among China’s largest automakers. BYD, traditionally dominant in domestic rankings, had only one model in the Top 20—the Fang Cheng Bao Ti7, which ranked 18th.

Like Tesla, BYD redirected a significant portion of production to overseas markets. In January, BYD exported approximately 97,000 new energy vehicles, including both PHEVs and EVs.