Smartphone maker Xiaomi has given its SU7 electric sedan a significant mid-cycle update in China, underscoring that its ambitions in the automotive sector extend beyond a one-off debut. And Europe should pay attention.
The refreshed model, now open for pre-orders ahead of an April 2026 launch, brings higher-end hardware, longer range, and more advanced driver-assistance technology, while maintaining a price point that continues to pressure established electric car makers.
In China, the updated Xiaomi SU7 starts at around 230,000 yuan, or roughly €30,000 before taxes. Despite a modest 7% price increase, Xiaomi has made several features standard, while many rivals still reserve them for higher trims. And it is still undercutting the Tesla Model 3 price over there (€31,500)
These updates include LiDAR, upgraded radar sensors, and an 800-volt architecture that enables faster charging and improved efficiency. The company also claims a maximum range of up to 902 kilometres under the CLTC test cycle, a figure that will inevitably shrink under Europe’s WLTP standard (630–680 km) but still signals strong efficiency.
Ford CEO loved it
Western observers have noted the SU7’s surprisingly strong performance and execution. In a revelation that made headlines among automotive insiders, Ford CEO Jim Farley admitted he had a Xiaomi SU7 specially shipped from China and drove it in the United States for six months.
He “didn’t want to give it up,” calling the car “fantastic” and highlighting it on a public podcast. Farley’s comments underscored a broader shift in how Western executives view Chinese EVs, no longer dismissing them as inferior but acknowledging they can match or surpass the driving experience of legacy brands.
Independent reviewers and tech commentators have echoed similar sentiments, praising the SU7 for its performance, design, and technology levels that belie Xiaomi’s status as a newcomer to the automotive industry.
Questions about maturity?
The update comes at a crucial moment for Xiaomi. After a spectacular market entry in 2024, the SU7 quickly became one of China’s best-selling electric sedans, selling more than 360,000 SU7s in just 21 months. Still, the brand also faced scrutiny over perceptions of its safety and the maturity of its automotive division.
With this refresh, Xiaomi is clearly trying to consolidate its position by emphasising safety systems, advanced electronics, and refinement rather than simply headline performance figures.
While the SU7 remains a China-only product for now, the implications extend well beyond the domestic market. Xiaomi has already confirmed plans to enter Western Europe from 2027, and the SU7 — or a derivative of it — is widely expected to form the backbone of that launch. The question is not whether Xiaomi will enter Europe, but what kind of competitor it will be when it does.
Premium priced as mainstream
At first glance, the SU7 appears to be priced at an assumed level after EU import taxes, squarely in the territory of mainstream electric sedans such as the Tesla Model 3 or Volkswagen’s ID range. However, a closer look at the vehicle’s dimensions, power, and interior technology suggests a more complex picture.
In terms of size, performance, and digital integration, the SU7 overlaps not only with mass-market EVs but also with entry-level premium models such as the BMW i4, Mercedes-Benz EQE, and Audi’s forthcoming electric sedans.
This is where Xiaomi’s strategy becomes particularly interesting for Europe. The SU7 is not positioned as a traditional luxury car, but it offers performance, digital interfaces, and driver-assistance hardware that, on paper, rival those of established premium brands.
If Xiaomi manages to translate this package to Europe at a competitive price — even after accounting for import duties, homologation costs, and VAT — it could put significant pressure on European manufacturers who rely on incremental upgrades and brand prestige to justify higher margins.
Super performance
The competitive threat becomes even clearer when looking at Xiaomi’s higher-end variants. In China, the SU7 Max and Ultra deliver power outputs and acceleration figures (such as 1.97 seconds from 0-100 km/h) that approach those of vehicles such as the Porsche Taycan and Tesla’s higher-performance trims.
In Europe, such versions would likely remain niche, but they reinforce Xiaomi’s ability to scale from mainstream to near-premium within a single model line.
For European brands, the real challenge is not that Xiaomi will suddenly replace BMW, Mercedes-Benz, or Audi in the hearts of loyal customers. Brand perception, dealer networks, and long-standing customer relationships still matter enormously in markets such as Germany, Belgium, and the Netherlands.
Instead, the challenge lies in how value is perceived. A well-equipped SU7 priced tens of thousands of euros below a comparable European premium EV could force competitors to rethink equipment strategies, software pricing, and the pace of technological upgrades.
Belgium, in particular, could become an early test case. The market is highly electrified, price-sensitive, and dominated by company cars, where the total cost of ownership often outweighs badge appeal.
If Xiaomi can offer long-range, fast charging, and advanced driver-assistance at a competitive leasing price, fleet managers may be more willing to consider a new entrant than private buyers traditionally are.
For Europe’s established carmakers, the message from China is clear: the next wave of competition will not only come from familiar rivals, but from technology companies that are increasingly comfortable playing on their turn.
