This Chinese vehicle outsold the Tesla Model 3 in China
5 mins read

This Chinese vehicle outsold the Tesla Model 3 in China


Tesla has been a leading automaker in the EV space on a global scale for years now, so it’s big news when the American manufacturer is finally unseated. A smaller Chinese automaker seemingly did the impossible by not only breaking into China’s competitive EV segment but also topping Tesla in its first year of production.

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Xiaomi SU7

Xiaomi

The Xiaomi SU7 outsold the Tesla Model 3

While legacy automakers have been struggling in China in recent years, Xiaomi has quickly established itself as a dominant force. According to data sourced from the China Passenger Car Association, the Xiaomi SU7 sedan overtook the Tesla Model 3 in its first year.

In April alone, 7,058 SU7 models left dealer lots versus just 5,065 Tesla Model 3s. In April through June, however, Tesla sold 38,446 examples of the Model 3, easily outpacing the SU7. The story was the same between July and September, with 52,052 Model 3s sold, eclipsing SU7 sales by more than 12,000 units during the same period.

Xiaomi SU7

Xiaomi

Towards the end of the year, Xiaomi saw its sales soar with nearly 70,000 SU7 models sold during October, November, and December. That easily topped the Tesla Model 3, which saw just over 52,000 units sold in the final three months of 2024.

At the beginning of January, Xiaomi sold just shy of 23,000 SU7 models, a massive lead over Tesla’s 8,009 Model 3s. Overall, between April 2024 and January 2025, Xiaomi sold 162,384 examples of the SU7, while Tesla moved just 152,748 Model 3s in the same period.

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Xiaomi has its sights set on another Tesla vehicle

Xiaomi may be the new kid on the block, but the Chinese automaker is already working on another Tesla competitor. In December 2024, Xiaomi gave the public its first look at the YU7, setting up the Chinese manufacturer to go head-to-head with the Tesla Model Y.

The Tesla Model Y remains the world’s best-selling vehicle, so it isn’t exactly an easy model to knock off the perch. To make the odds worse for Xiaomi, the Tesla Model Y was China’s best-selling new car, with 480,309 units sold in 2024.

2025 Xiaomi SU7 and YU7

Xiaomi

Even so, while foreign brands are considered exotic in China, Xiaomi’s success with the SU7 over the Tesla Model 3 is an underdog story if there ever was one. Xiaomi found success with a simple, proven formula of pricing the SU7 under the Model 3 while offering more standard equipment. If Xiaomi implements that same formula in the YU7, it could have a fighting chance against the Tesla Model Y.

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Elon Musk’s popularity in China cannot be underestimated

While Elon Musk has become a controversial figure in the Western world, that’s far from the case in Asia. According to Channel News Asia, Musk is the focus of a fascination for the Chinese people. Tesla’s sales seem to support that positive curiosity as well. While many automakers experienced a decline in sales, Tesla’s 2024 sales in China increased by 8.8% compared to the previous year.

Elon Musk, CEO of Tesla

Kevork Djansezian via Getty Images

Interestingly, Musk has proven to be something of a star in China. Qimen Hotpot House, where Musk dined during his 2019 visit to Beijing, still sees customers following in his wake more than five years later. The restaurant even put up a brief summary of Musk’s visit on their door as staff grew tired of telling the tale to curious customers.

Musk’s entry into politics may have soured his status among the Chinese people, though, with some questioning how much control he has over President Trump. While some suggest politics is not something he excels at, others hold out hope that Musk will continue to be a good thing for China.

Elon Musk joins President Trump for signing executive orders in the Oval Office

Andrew Harnik/Getty Images

Final thoughts

Chinese automakers have been underdogs with limited reach until just recently. BYD has taken the world by storm, expanding into markets around the world at a rapid pace. Now Xiaomi, a much smaller Chinese automaker, is gaining momentum. With the Xiaomi SU7 successfully overtaking the Tesla Model 3 in its first year of production, it’s time to see if the YU7 can follow in its sibling’s footsteps.

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