Xiaomi has launched its latest SkyNomad series of extended-range SUVs with prices set significantly below those of Tesla’s Model Y L, intensifying competition in China’s premium electric vehicle (EV) segment. The Beijing-based company announced that the five-seat N70 Max will start at 259,900 yuan (approximately HK$301,450), while the seven-seat N90 Max is priced from 299,900 yuan. Both models are expected to begin deliveries in September. In comparison, Tesla’s Model Y L, manufactured at its Shanghai facility, starts at 339,000 yuan.
Xiaomi founder and CEO Lei Jun highlighted at the launch event that the company invested three and a half years developing its Kunlun architecture, which serves as the foundation for the new SUVs. He emphasized that the SkyNomad vehicles offer “off-road capabilities” along with spacious, flexible interiors featuring reconfigurable seating arrangements.
The company’s aggressive pricing strategy is seen as part of its effort to meet an ambitious full-year sales target of 550,000 vehicles, according to a recent research note from Deutsche Bank. With Xiaomi having sold 180,055 units in the first half of 2026, the bank pointed out that the company would need to average roughly 61,000 monthly sales during the second half of the year to achieve its goal.
The SkyNomad lineup falls under the “extended-range” classification, meaning the vehicles can cover over 1,000 kilometers on a single charge. This is made possible through a small petrol engine that recharges the battery without directly powering the wheels. Lei also noted the inclusion of the Dragon Armour battery system, which employs a battery-pack design optimized for enhanced performance and safety in extended-range EVs.
Additional features in the new models include an early-stage autonomous driving system, zero-gravity seats designed to reduce driver fatigue, built-in refrigerators, and advanced audio setups.
Xiaomi has emerged as a significant challenger to Tesla in China’s EV market. Last year, it became the first domestic automaker to surpass Tesla in mainland sales with its fully electric SU 7 model. The SU 7, which debuted in early 2024, sold 258,164 units last year, outpacing Tesla’s Shanghai-assembled Model 3, which recorded 230,206 deliveries during the same period, according to the China Passenger Car Association.
Tesla’s Model 3, introduced to the Chinese market in late 2019 and produced at the company’s Shanghai Gigafactory, had maintained a leading position in the premium electric sedan segment until recent years despite fierce competition from domestic rivals such as Nio, Xpeng, and IM Motors. Xiaomi’s expanded product offerings and competitive pricing now signal a heightened contest for market share in China’s fast-evolving premium EV landscape.