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Yahoo
a day ago
- Automotive
- Yahoo
‘China's car market has lost all reason' – the country's largest western carmaker refuses to compete in Tesla and BYD's EV price war
Once China's dominant carmaker before being overtaken by fast-growing EV leader BYD, Volkswagen is now in a rebuilding year. VW Group China boss Ralf Brandstätter says he's willing to sacrifice market share during the price war to protect the equity of his company's car brands. Relief is due to come next year with a new range of affordably priced EVs built off the dedicated China-only 'CMP' platform. China's brutal EV price war waged between industry giant BYD, Tesla and now Xiaomi is increasingly squeezing the country's largest western carmaker out of the market. According to Volkswagen Group, there are 130 brands are competing for a share of the EV and plug-in hybrid sales. The result of such an oversaturated supply is that almost no one is able to earn a positive return. 'That means there's no money left over to invest in the future,' VW exec Ralf Brandstätter told German business daily Handelsblatt in an interview published Tuesday. 'China's car market has lost all reason.' Volkswagen is in the starting phase of a new EV product cycle it hopes will increase its total China sales by a third in the mid-term, allowing it to fully utilize its installed local capacity of 4 million cars annually. Leading that is Brandstätter, who is ultimately responsible for a portfolio of group brands including VW and Audi, as well as its China-only entry brand Jetta. The group may play a minor role in the United States, but it remains the world's second largest carmaker after Toyota. That's mainly thanks to its prescient bet on China, a market it dominated for nearly 40 years after becoming the first western car brand to successfully enter the market, in 1985. But ever since Beijing attempted to reel in an overheated real estate sector—in the process collapsing its property bubble—VW has steadily lost volume. In October 2022, several months after developer Evergrande defaulted on $300 billion worth of debt, Tesla first slashed vehicle prices in China. Its decision the next quarter to double down on this strategy with further rebates off the hood of Tesla cars helped cement the EV price war that still rages today. As a result, VW Group was eclipsed by fast-growing industry leader to BYD, which sold 4.21 million cars in China in 2024 to Volkswagen's 2.93 million last year. In 2019 just prior to the 'Three Red Lines' housing market reforms, VW's total China sales had hit a record of 4.23 million cars. While the prevailing prices for EVs in China are low, these aren't cheaply built econoboxes—China's market features the single greatest array of technologically advanced vehicles found anywhere on Earth. Even brands previously known for consumer electronics, such as smartphone manufacturer Xiaomi, have launched their own high-tech EVs for a relative pittance. Despite the $30,000 price tag, its sporty SU7 sedan that debuted last year looked and performed so much like a European grand tourer that Xiaomi needed to defend itself from suspicions imitation took flattery to a whole other level. Given the brutal conditions in the market, VW has declared 2025 to be a year of transition. Only starting next year on does it expect to have attractive products that do not need to compete with the likes of BYD and Xiaomi on price alone. These begin with volume models built on the China-specific Compact Main Platform ('CMP'), potentially including a model sold under its Jetta brand for the equivalent of about €15,000 (about $17,500). The new cars continue in 2027 with more upscale models underpinned by the China Scalable Platform ('CSP'). Until then it won't chase after sales with ever increasing incentives just to move metal gathering dust on dealer lots. 'In such an unhealthy market environment, our share is not important,' Brandstätter claimed. 'Those only capable of selling their cars through rebates are damaging their brand.' Volkswagen serves as a litmus test of a legacy carmaker's desire to adapt and change with the times as demand shifts from gas-powered cars relying on mechanical innards like pistons and camshafts to EVs defined by their high-tech software features. Whereas 97% of GM's consolidated operating profit were earned in North America last year, VW continues to stake its claim to a leadership role across the entire global auto industry. This includes remaining relevant in the latest technological trends like autonomous ride hailing, where VW still harbors ambitions even after legacy rivals Ford and GM buried theirs. This story was originally featured on
Business Insider
6 days ago
- Automotive
- Business Insider
Tesla's rivals in China are launching a wave of new Model Y killers to take on the best-selling SUV
China may not care about Elon Musk's politics, but that doesn't mean things are going well for Tesla there. Despite Tesla's sales in China rising in June amid upbeat sales of the refreshed version of its Model Y SUV, the electric vehicle giant is stuttering in its second-largest market. Tesla sold 129,000 vehicles in China during the second quarter of 2025, according to data from the China Passenger Car Association, down nearly 12% from the same period last year. Sales of the Model Y, Tesla's most popular car and China's best-selling SUV, have been flat since 2022 — and it's now set to face a new wave of competition. Last month, smartphone giant-turned EV maker Xiaomi launched its YU7 electric SUV, which amassed more than 240,000 preorders in 24 hours, while EV startup Xpeng debuted the G7, its Model Y rival, a week later to strong early demand. Both cars are priced below the Model Y, and are set to be joined by Nio's L90, another electric SUV that will go on sale later this month. Lei Xing, an independent analyst covering the Chinese auto industry, told Business Insider that Tesla has weathered attempts to dethrone the Model Y before. But, he added, Elon Musk's automaker has never faced a challenge quite like the YU7, which has taken China by storm. "I think it's the Model Y killer. There's been a lot of rivals that have come before it, and the Model Y has been very resilient, but the YU7 seems to be the one that can overtake it," he said. Xiaomi's EV revolution Xiaomi scored a massive hit with its first EV, the SU7, selling more than 200,000 since it launched in March 2024. The company faced a crisis earlier this year when an SU7 was involved in a fatal highway crash, but the sedan has continued to sell well. Lei Xing said that Xiaomi's cars had proved extremely popular with women and young people. In comments posted on social media last week, Xiaomi CEO Lei Jun said that the average age of YU7 preorder holders was 33, and around 30% came from women. Lei Xing added that the company had successfully tapped into a massive, tech-obsessed consumer base of "fanatics" that already own multiple Xiaomi products. He said one of the earliest SU7 buyers in Shanghai told him he owned around 300,000 yuan ($41,000) of Xiaomi products in his home in addition to the company's first EV. "Xiaomi over the last 15 years has expanded their product lineup to all sorts of devices. They've built this home-car-human connection. And now that last missing piece is the car," said Lei Xing. Snow Bull Capital CEO Taylor Ogan, whose Shenzhen-based firm invests in the EV and battery industry, told BI that Xiaomi's tech ecosystem had handed the company a major advantage in China's ultra-competitive market. "My home has over 15 Xiaomi devices, my TV is Xiaomi, my bed is a Xiaomi. This is very common in China — once you're in the ecosystem, it's really hard to get out of," Ogan said. Losing ground on tech Lei Xing said that while Tesla was still the "benchmark" for many Chinese automakers in terms of tech, the US firm was now behind on some key features, such as advanced driver assistance systems. Musk has previously said that Tesla's attempts to launch its Full Self-Driving system have been hampered by Chinese rules around data sharing. The company launched a limited version of FSD in China earlier this year, but it charges Tesla owners around $8,000 to access it, unlike many of its rivals, who have begun offering similar systems for free. "On ADAS, because of some of the regulatory restrictions, Tesla is behind in China," said Lei Xing. "These features are becoming commoditized. The BYD Seagull offers highway ADAS as standard. Customers have come to expect these kinds of things," he added. Ogan said that Tesla still has a good reputation in China, but the company's ageing product lineup and tech have left it vulnerable. "Tech-wise, there are probably 10 companies that have better tech. Xiaomi definitely has better tech than Tesla. It has better motor tech, it has better infotainment, and it actually makes a lot of its own tech," Ogan said, who is an investor in Chinese auto giant BYD. "Tesla is just refreshing the bumpers and their headlights and adding an LED strip in the car. That might work enough in Western markets, but it's not enough in today's market here," he added. Ogan said that Tesla's previous tactic of lowering prices to fend off competition would likely be less effective now that many of its rivals offer cheaper models, and said that some Tesla showrooms had turned to new tactics to boost sales. "The one that's nearest to me, almost every night they're hiring street performers to perform outside of their showroom to try to drive traffic," he said. 'They're nowhere to be seen' One thing that might help Tesla fend off the threat of the YU7 in the short term is the painfully long delivery times for Xiaomi's new EV. The company's website is advertising delivery times of up to 60 weeks for the YU7. Lei Xing said some customers unhappy about the prospect of waiting over a year for the high-tech SUV might instead turn to the Model Y. Xiaomi CEO Jun himself backed that idea, telling his social media followers they should consider buying rival models like Xpeng's G7 and the Model Y if they're in a "hurry." In the long run, however, that is unlikely to solve Tesla's main problem in China: a lack of new products. "They haven't launched a new product in years," Tu Le, the managing director at Sino Auto Insights, told BI. "The reality is that Tesla doesn't face an Elon personality challenge in China like it does in the rest of the world. It is a lack of competitive products in the Chinese market that is causing Tesla problems," he added.
Daily Record
08-07-2025
- Automotive
- Daily Record
Sales soar for EV car with 500-mile range with 315K orders in 72 hours
The game-changing EV has a greater range than many top-selling petrol cars with a full tank. Sales recently soared for a new Electric Vehicle (EV) with an impressive 518-mile range which rivals a petrol car with a full tank of fuel. The remarkable model can go from nought to 60 mph in just 3.23 seconds and can hit a top speed of 157 mph. According to a recent survey by Motorfinity, around 44 per cent of motorists in the UK are thinking about changing to an EV. In recent years, many have been put off by an EVs limited range, however, this is now changing. In 2011, Nissan launched their Leaf EV. This could only be driven around 100 miles before needing charged. Chinese smartphone giant Xiaomi is now changing everything the EV world with its dramatic entry into the electric market. According to the Mirror, they have achieved a remarkable milestone with just its second ever model. Within just three minutes of their launch, they received more than 200,000 pre-orders for its new YU7 electric SUV. Xiaomi later announced on social media that this number had climbed to more than 289,000 within the first hour. And after 72 hours, Xiaomi's 351 retail stores across China reported up to 315,900 locked-in orders for the YU7. This surge in demand is a significant achievement for Xiaomi — outpacing the annual deliveries of many other EV manufacturers — as the company only started making EVs in 2024, when the SU7 sedan was launched. The YU7, which is priced at roughly £25,790 (253,500 yuan), is positioned to compete directly with Tesla's Model Y — and it's almost four per cent cheaper than its American rival. Following the opening of pre-orders, Xiaomi's shares on the Hong Kong stock exchange surged to an all-time high, rising by a staggering eight per cent in early trading, before closing up 3.6 percent. The YU7 may only be Xiaomi's second vehicle, but it has already demonstrated the company's ability to disrupt China's highly competitive EV market. BYD currently leads China's new energy vehicle market with a 29 per cent share and sales — just shy of one million cars from January to April. In contrast, Tesla holds just under five per cent of the market, while Xiaomi has quickly captured a 3.5 per cent share. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. Xiaomi's shares have risen by more than 70 per cent so far this year, making it one of the top-performing companies on the Hong Kong stock exchange with a value of around £139 billion. The rapid growth of China's EV industry on the whole is also evident, with production of new energy vehicles — including EVs and hybrids — increasing by more than 46 per cent in the first four months of the year. Meanwhile, sales of internal combustion engine (ICE) cars have declined by six percent, highlighting a dramatic shift toward domestic EV manufacturers. Foreign brands, once dominant in China, now hold just 31 per cent of the market across both EVs and traditional fuel-powered cars, underscoring the rise of domestic companies like Xiaomi.
Time of India
07-07-2025
- Automotive
- Time of India
Xiaomi cracks the EV code – its new model surpasses 289K orders in an hour
Tech-to-auto crossover stories often end in stumbles, but Xiaomi Corp. is rapidly rewriting that narrative. With its second electric vehicle (EV) now on the road and a growing footprint in China's premium EV segment, Xiaomi has emerged as a serious challenger in the automotive world—where even tech behemoth Apple failed to gain traction, Bloomberg reports. At a recent launch in Beijing, Xiaomi founder and CEO Lei Jun introduced the company's long-awaited SUV—its second EV after the SU7 sedan launched in March 2024. In a not-so-subtle nod to Apple's abandoned car ambitions, Lei declared that Xiaomi would offer seamless integration for iPhone users, underscoring the company's ability to build a smart mobility ecosystem that leverages its tech DNA. The newly launched SUV secured 289,000 orders within an hour, eclipsing the debut numbers of its sedan. Starting at 253,500 yuan (approx. $35,000), it directly competes with Tesla's Model Y, while the SU7 sedan starts at 215,900 yuan. With these launches, Xiaomi is not just a smartphone company venturing into mobility—it's now one of the most-watched new entrants in the global EV industry. A tailwind Apple didn't have Xiaomi's successful entry is as much about timing and strategy as it is about market context. Unlike Apple's ill-fated Project Titan, which spent over a decade aiming for full autonomy, Xiaomi focused on realistic, consumer-first EVs. It entered the world's largest EV market—China, with a supportive policy ecosystem, developed charging infrastructure, and a rich talent pool. Lei Jun's approach was grounded and ambitious: he assembled a dream team of auto veterans from Geely, BMW, SAIC-GM-Wuling, and Magna Steyr, and invested over $1.6 billion across 100+ EV component suppliers. Unlike rivals Nio and Xpeng, Xiaomi chose not to outsource production. Instead, it built its own manufacturing facility and secured its supply chain, informed by lessons from its early smartphone struggles. From smartphones to steering wheels Xiaomi's strength lies in its brand loyalty. Known for its 'Mi Fans,' the company has extended its user-first design philosophy to its vehicles, focusing on intelligent features, affordability, and connected experiences. Nearly 50 per cent of SU7 buyers reportedly choose the car without comparing it to others, and there is growing anecdotal evidence of parents buying the model for their children, citing safety and quality. However, Xiaomi's EV production remains boutique in scale. It targets 350,000 units in 2025, a sliver of BYD's 4.3 million units or Toyota's 10.8 million. The company currently lacks a sub-₹20 lakh ($20,000) offering, which dominates the volume market in China and where BYD has a commanding presence. Analysts warn that without expanding its model lineup, Xiaomi could face the same limitations as Tesla—strong brand appeal but slow volume growth. Copycat or smart design? Not everyone is impressed. Critics, including SAIC executives, have accused Xiaomi of copying design cues from Porsche—earning the SU7 the nickname 'Porsche Mi.' But Xiaomi's design chief, Li Tianyuan, a former BMW designer, has defended the car's styling as performance- and aerodynamics-driven. A recent fatal accident involving the SU7 also drew scrutiny, particularly around the car's advanced driver assistance systems (ADAS). While Xiaomi maintained a low profile post-incident, consumer confidence in the brand appears undeterred, with strong sales continuing. Global ambitions take shape Looking ahead, Xiaomi has confirmed that it will explore international markets from 2027, with R&D operations planned in Munich. While Europe and the US have tightened tariffs on Chinese EVs, Xiaomi may test waters in countries like Germany, Spain, and France, as per local media reports. Xiaomi's auto division, which is expected to turn profitable by the second half of 2025, has helped the company post record Q1 revenues this year. According to UBS China autos analyst Paul Gong, tech companies with hardware experience—like Xiaomi—are proving more adept at scaling in the EV space than those with purely software roots. 'Xiaomi is a latecomer,' Lei Jun acknowledged on Weibo. 'But in a market shaped by innovation and driven by technology, there's always room for the right kind of disruptor.' In a crowded and cutthroat EV arena, Xiaomi is proving that tech know-how, if applied wisely, can indeed put wheels on the ground—and rivals on notice.
Hindustan Times
06-07-2025
- Automotive
- Hindustan Times
Xiaomi YU7 EV gets 2.40 lakh orders in just 18 hours. Check details
Xiaomi YU7 has a top speed of 253 kmph. Notify me The latest electric car by Xiaomi, the YU7 SUV, has created a hype within the Chinese car market since more than 240,000 bookings were reserved in just 18 hours of it hitting the markets officially. The figures indicate the mounting momentum for the tech giant's push within the electric mobility segment, barely a year after it launched its first-ever vehicle, the SU7 sedan. Orders flood in as Xiaomi's EV strategy gains traction According to reports from Car News China, Xiaomi received 200,000 refundable pre-orders for the YU7 within the first three minutes of launch. That figure surged to 289,000 within the hour, with more than 240,000 customers converting their interest into confirmed purchases shortly after. Buyers in China could choose from three ordering options: a standard pre-order that finalizes after a week, a non-refundable instant order, or a now-unavailable "priority delivery" option that guaranteed early access to the vehicle. The overwhelming response marks a significant leap for a company best known for smartphones and consumer electronics. Also Read : Xiaomi YU7 electric SUV unveiled with 835 km of range Xiaomi YU7: Design and performance Launched in May 2025, the Xiaomi YU7 takes various styling cues from the previous SU7 sedan, as well as high-end SUVs like the Porsche Macan and Ferrari Purosangue. The YU7 is available both in single- and dual-motor options. The entry model rides on rear-wheel drive, while the dual-motor variant is equipped with all-wheel drive, producing a combined power of 288kW and 528Nm. According to the CLTC test cycle, the YU7 delivers rival driving range numbers: 835 km for the rear-wheel-drive Standard version with a 96.3kWh battery, 760 km for the all-wheel-drive Pro model with the same battery, and 770 km for the top-of-the-line AWD Max, which receives a bigger 101.7kWh battery pack. Priced from 253,500 yuan (approximately ₹ 30 lakh), the YU7 beats the starting price of China's Tesla Model Y by a margin of nearly 10,000 yuan, and thus becomes an attractive value-based product in the mid-premium EV SUV category. Also watch: Xiaomi SU7 electric car makes India debut: Will the Tesla, BYD rival launch here? Global ambitions fuel anticipation Xiaomi CEO William Lu has confirmed the company's plans to expand its electric vehicle offerings worldwide in the next few years. The company aims to establish up to 10,000 retail outlets outside China by 2029 as it scales its automotive operations. While specific markets remain unannounced, Xiaomi's plans signal clear global intent. Interestingly, the SU7's success also found endorsement from outside China. Ford CEO Jim Farley earlier admitted he had been driving a Xiaomi SU7 imported to the U.S., praising the vehicle's performance and build quality. With a growing product portfolio and unprecedented early demand, Xiaomi appears to be accelerating quickly in a crowded EV race — with eyes firmly on global roads. Check out Upcoming EV Cars in India, Upcoming EV Bikes in India. First Published Date: 06 Jul 2025, 11:00 AM IST
