January tested the resilience of China’s auto market, exposing fault lines for some brands while spotlighting the rare breakout success. Many domestic manufacturers reported sales declines, with BYD among the most notable names to feel the squeeze. Yet even in a cooling climate, certain models found remarkable momentum. None more so than the Xiaomi YU7.

The all electric SUV, positioned as a rival to the Tesla Model Y and styled with more than a passing resemblance to the Ferrari Purosangue, was the best-selling new vehicle in China last month.

Read: This Ferrari SUV Lookalike From China Makes More Power Than The Real One

According to figures shared by Autohome, it moved 37,869 units, comfortably ahead of the Geely Boyue L in second place with 34,176 sales. The Geely Geome Xingyuan followed with 29,007, while the Aito M7 secured fourth with 26,454 units.

The presence of two Geely models in the top 5 best-sellers reflects a strong month for the group, with sales up 1 percent year-on-year to more than 270,000 units. The M7 from Aito, backed by Huawei and Seres, also surged in popularity, as did other models from the brand, helping it deliver more than 40,000 vehicles, a surge of over 80 percent from January 2025.

Sales of the YU7 in China have remained strong in recent months. December saw 39,089 units sold, making it the third best selling new car in China at the time. That figure represented a clear rise from November’s 33,729 and October’s 33,662.

It has also moved decisively ahead of the Tesla Model Y, selling more than twice as many units. The Model Y ranked only 20th last month, with 16,845 sales, a result that would have seemed unlikely not long ago. In fact, it was China’s best-selling model in December.

Familiar Names Climb The Charts

Perhaps the biggest surprises came from Volkswagen. It ranked fifth in China’s top 20 best-selling cars last month, led by the Sagitar with 25,316 units sold. VW also sold 23,481 Lavidas, 21,330 Tiguan Ls, 20,799 Passats, and 19,306 Magotans. In addition, the Nissan Slyphy sold 24,209 units, indicating that not all hope is lost for legacy carmakers in the country.

Things weren’t so rosy for BYD. It sold 205,518 vehicles in China last month across its brands, a significant decline from the 300,538 in January 2025. Only one of its models entered the top 20, the Fang Cheng Bao Ti7, which ranked 18th with 17,116 units sold.

China New Car Retail Sales January 2026

Sources: Autohome, Carnewschina

The Xiaomi SU7 hasn’t been on the market for very long, but one owner in China put the electric sedan through its paces at a rate higher than most taxis. The model has covered an astonishing 165,134 miles (265,757 km) in just 16 months (476 days), offering a real-world look at how the EV hardware handles heavy use.

What is likely the highest mileage Xiaomi in existence was highlighted on a video that was uploaded on Bilibili by Jackson’s Sunset Drive. The vehicle in question is an Aqua Blue SU7 Pro owned by Mr. Feng, who drove an average of 373 miles (600 km) every day since he took delivery.

More: His Hyundai Ioniq 5 Battery Still Held 88% After 360,000 Miles

For context, the daily trip matches the distance between Los Angeles and San Francisco, with the total distance covered being the equivalent of 6.63 times the circumference of the Earth.

Battery Health After 165,000 Miles

The most impressive takeaway from the high-mileage experiment is the battery’s state of health, as measured by an official Xiaomi service station. Despite the intensive usage, the 94.3 kWh lithium iron phosphate Shenxing battery pack from CATL has retained 94.5% of its original capacity.

As Carnewschina points out, the rival Tesla Model 3 Long Range comes with an eight-year, 120,000-mile (193,120 km) warranty, promising a battery health of at least 70 percent after that period.

Minimal Wear And Tear

In the case of the Xiaomi, it isn’t just the battery that is holding up. The owner claims the vehicle has never required a brake pad replacement, which is a testament to the efficiency of its regenerative braking system. Furthermore, the coolant remains pure, with zero water contamination.

More: After 100K Miles, VW’s EV Barely Lost Range Thanks To One Trick

The Pro trim of the fully electric sedan is fitted with a rear-mounted motor producing 295 hp (220 kW / 299 PS) and 400 Nm (295 lb-ft) of torque. According to the automaker, the 94.3 kWh battery offers a CLTC range of 830 km (516 miles) in this variant.

Fuel Savings

Doing the math, based on an estimated efficiency of 18 kWh/100km, Mr. Feng’s Xiaomi has consumed roughly 47,800 kWh of electricity over the past 18 months. This translates to around 506 full charge/discharge cycles for the 94.3 kWh battery.

Overall, Mr. Feng estimates that by opting for the electric sedan over an ICE-powered vehicle he has saved over ¥100,000 ($14,400) in fuel costs over the 265,757 km (165,134 miles). That is a significant amount considering that the starting price of a Xiaomi SU7 Pro is ¥245,900 ($35,400) in China.

More: Ford’s Jim Farley Was “Shocked” After Tearing Down Chinese And Tesla EVs

Predictably, the video has gained traction and was even shared by Xiaomi CEO Lei Jun. The owner revealed that he plans to continue racking up miles on his EV, targeting to reach 600,000 km (372,823 miles) within three years.

The Xiaomi SU7 has recently made headlines for outselling the rival Tesla Model 3 in China, with 258,164 units delivered in 2025. The company has already announced a refreshed version of the sedan, which is set to arrive in April 2026 with more advanced ADAS, a standard LiDAR, and a longer driving range of up to 560 miles (902 km) in the CLTC cycle.

Xiaomi

Demand for electric cars in China may be cooling, and some of the country’s biggest automakers are starting to feel the chill. Several of the most prominent domestic brands, including BYD, Xpeng, and Xiaomi, reported noticeable drops in January sales.

Data shows that BYD sold 205,518 vehicles in China last month. The number sounds solid on its own, but it marks a sharp decline from the 300,538 vehicles the company moved in January 2025.

Read: A $9,500 Hatch Stole Tesla’s Best-Seller Crown In China

Both BYD’s electric vehicles and plug-in hybrids were affected. Of the 205,518 vehicles sold last month, 83,249 were EVs and 122,269 were PHEVs. A year earlier, those numbers stood at 125,377 and 171,069 respectively. Exports took a hit too, dropping to 100,482 units in January from 133,172 in December.

Is Government Policy Slowing Sales?

These figures suggest weakening demand in China and possibly overproduction for overseas markets, but a recent government policy change may go some way to explaining the drop. As of January 1, the country reinstated a 5 percent purchase tax for new energy vehicles, having previously exempted them from a 10 percent tax for more than a decade, CNBC reports.

“We see increasing pressure on China’s auto market in 2026, driven by a combination of policy and competitive factors,” Helen Liu, partner at Bain & Company, told CNBC. She added that recent tax changes may prompt some consumers to delay purchases, while automakers hold back on new model launches.

“We know [EV sales will] slow, we just don’t know by how much,” added Tu Le, founder of Sino Auto Insights. “We’ll know much better after the first quarter is over.”

Rough Starts And Reversals

Xiaomi also struggled out of the gate. It sold 39,000 cars in January, which was an improvement over the same time last year, but a steep drop from the more than 50,000 EVs delivered in December. Xpeng’s January was even rougher. Sales fell 34.1 percent year-on-year to 20,011 units, and the month-on-month drop was starker still at 46 percent compared to December 2025.

Li Auto’s performance dipped as well, with deliveries slipping to 27,668 units for the month.

Competitors Capitalize

However, it’s not all bad news. One of the few bright spots was Aito, a newer brand backed by Huawei’s operating system, which reported more than 40,000 deliveries in January, marking a gain of more than 80 percent compared to the same month last year.

Sales at Leapmotor rose to 32,059, while Nio also reported an increase to 27,182 units. Geely sold more than 270,000 cars in January, a 1 percent increase year-on-year. Interestingly, its EV sales fell by 15 percent, while its PHEV sales rose 37 percent.

That performance has pushed Geely into second place in the country’s EV market behind BYD, thanks in part to strong momentum from its Galaxy and Zeekr brands.

Will China Step In?

The slowdown has fueled speculation that Beijing may step in once again. If the slump continues into the first quarter, analysts believe the government could reinstate certain subsidies or incentives

Xiaomi isn’t content with making an SUV that looks almost as good as Ferrari’s. The Chinese tech giant’s high performance YU7 GT has surfaced in official Chinese filings, and if the numbers are right, this thing has enough power to make some V12 Purosangue owners sweat into their designer driving gloves.

Related: A Xiaomi EV Was Spotted In America, And A US Maker Might Be Behind It

The regular YU7 is already turning heads by mixing sleek looks with serious EV grunt. Now Xiaomi has cranked the dial way past sensible. The GT version gets a dual-motor setup pushing a combined 738 kW, which works out to about 990 hp (1,004 PS). Its combustion Ferrari lookalike makes do with 715 hp (725 PS / 733 kW).

Okay, so that’s not quite as crazy as the 1,526 hp (1,547 PS / 1,138 kW) punched out by the hottest version of the YU7’s sedan brother, the SU7 Ultra, but we doubt anyone who buys one will feel it lacking in go.

Spec papers logged with Chinas’ Ministry of Industry, Information and Technology (MIIT) list the top speed as 186 mph (300 kmh) and we’d put money on that being artificially limited. The battery is a lithium pack from CATL but electric range details are still under wraps.

Subtle Menace

Visually, the GT dials up the drama with, chunkier bumpers with angrier air intakes and a large rear diffuser. Red brake calipers peek out from behind 21 inch wheels, and there are matching red GT badges on the rail and doors to make sure nobody mistakes this for the sensible family version.

The regular YU7 lineup already stretches from single-motor, rear-drive models with around 315 hp (320 PS / 235 kW)  up to dual-motor versions with as much as 681 hp (691 PS / 508 kW). Those cars helped Xiaomi rack up huge sales in China and even outranked the Tesla Model Y on home turf.

Priced to Shame Porsche

The YU7 GT sits higher, both in performance and, most likely, price. Early chatter from China point to a range between 450,000 and 500,000 yuan, or roughly $60,000 to $70,000. Porsche’s new Cayenne Turbo Electric makes significantly more power, with 1,139 hp (1,155 PS / 850 kW), but it starts at $163,000 in the U.S. and is expected to cost at least twice as much as the Xiaomi in China. No surprise, then, that Porsche is struggling.

Baldauf

The global EV race has reached a point where even rumors can travel fast and land hard, and this week provided a clear example. Xiaomi and Ford have both denied a report that they are in talks to jointly manufacture new electric vehicles in the United States, pushing back against a surprise claim that the two companies were exploring a shared path forward.

The story, published over the weekend by The Financial Times and attributed to four people familiar with the matter, alleged that Ford had held discussions with Xiaomi about forming a joint venture to build future EVs on American soil. It also claimed Ford has spoken with other Chinese automakers about possible US-based collaborations, including BYD.

Read: Ford’s CEO Is Daily Driving A Xiaomi SU7 EV And Loving It

Adding weight to the speculation, Ford chief executive Jim Farley has been openly complimentary about Chinese EVs in recent years, with particular praise reserved for the Xiaomi SU7. His remarks, along with his personal use of the car, have fueled curiosity about how closely Detroit is watching developments in China’s EV market.

Both Sides Say No

However, shortly after the report was published, Ford pushed back, stating, “This story is completely false,” and adding, “There is no truth to it.” Xiaomi also denied any plans to collaborate with Ford on building EVs in the US.

“Reports that Xiaomi is discussing a joint venture with Ford Motor Co are false. Xiaomi does not sell its products and services in the United States and is not negotiating to do so,” the Chinese company said.

Would the U.S. Even Allow It?

Even the idea of such a deal is politically volatile. Any partnership between an American automaker and a Chinese firm would likely face immediate scrutiny in Washington.

Speaking to the Financial Times, Representative John Moolenaar, the Republican chair of the House China committee, said a Ford-Xiaomi deal would amount to “turning its back on American and allied partners, and it will make our country further dependent on China.”

Current federal policy makes the prospect even more unlikely. The Biden administration recently finalized rules that effectively block Chinese EVs from entering the U.S. market, citing national security risks.

Surprisingly, President Donald Trump has taken a more nuanced stance. While still critical of China on trade, he has said he’d support Chinese companies building factories in the U.S. and employing American workers.

“If they want to come in and build a plant and hire you and hire your friends and your neighbors, that’s great, I love that,” Trump said. “Let China come in.”

Xiaomi has quickly established itself as an automaker to be reckoned with in China, and last year, it achieved something that would’ve seemed unlikely just a few years ago: its all-electric SU7 sedan outsold the Tesla Model 3.

Once the brand of choice for EV-hungry Chinese consumers, Tesla now finds itself outpaced by domestic rivals that are rapidly improving their game. Xiaomi is leading that charge.

Read: Xiaomi’s YU7 Outsold Tesla’s Model Y And Now It’s Getting Personal

Data from the Chinese Passenger Car Association shows that in 2025, Xiaomi sold 258,164 SU7s. That’s nearly double the roughly 135,000 units it moved in 2024, a figure made more impressive given that the SU7 only launched in April of that year.

Perhaps more notably, it overtook the Tesla Model 3, which saw 200,361 deliveries in the same period.

What’s Driving the Switch?

Chinese buyers have responded well not only to the SU7’s design inside and out but also to the technology it packs and the performance it delivers.

The base version undercuts a comparable Model 3 by roughly 9 percent, according to a report from the South China Morning Post, giving it a clear pricing advantage. Strong driving range and well-specced hardware round out the package, allowing the SU7 to compete in a segment Tesla once dominated.

“Tesla’s dominance in the premium EV segment has been eroded by its Chinese competitors that are able to churn out vehicles on par with its technology standards while offering them at lower prices,” a senior manager at the Shanghai-based consultancy Suolei told the outlet. “Xiaomi’s success is a strong boost for Chinese carmakers, which are all trying to move up the value chain.”

What’s in Store for 2026?

This year is shaping up to be even bigger for Xiaomi. In April, an updated SU7 will be launched, complete with more advanced driving assistance functions, including LiDAR across the entire family, and an improved driving range of up to 902 km (560 miles) on the CLTC cycle.

Within the first 15 days of pre-orders opening, Xiaomi reportedly secured 100,000 reservations for the refreshed model.

Also: Ford’s Jim Farley Was “Shocked” After Tearing Down Xiaomi And Tesla EVs

In total, Xiaomi sold 411,800 vehicles last year and is targeting 550,000 in 2026. This will also be the first full year of availability for the YU7 SUV, which could become its best-selling model.

Back in October, the YU7 notched 33,662 sales in a single month, even edging past the Tesla Model Y. Xiaomi’s third model, the YU9, will also make its debut this year as a range-extender EV.

Electric sports cars are finally happening in a big way, but Europe might not be waiting for Porsche or Alpine to lead the charge. A small Chinese brand you have probably never heard of wants in on the action, and it looks like a far more serious enthusiast proposition than the MG Cyberster.

More: Chinese Sports Car Looks Like A Tesla Roadster Hooked Up With A Lancia

The car is the SC-01, a lightweight electric sports coupe that’s not just headed to Europe, as the company itself has confirmed, but also set to be built there, according to Chinese media. Backed by Xiaomi and Jiangling’s JMEV brand, around 1,000 of these compact two-seaters are expected to be produced in Italy.

Visually, the SC-01 leans hard into classic wedge territory. Think Lancia Stratos proportions filtered through a modern EV lens, with compact dimensions and proper sports car stance.

At 4106 mm (161.7 inches) long it’s a smidge shorter than an Alpine A110 and around 270 mm (10.6 inches) more compact than the recently axed ICE Porsche 718 Cayman. The real headline, though, is the weight.

Hardcore Diet

At 1,365 kg (3,009 lbs) the aluminium SC-01 is astonishingly light for an EV – 520 kg (1,150 lbs) lighter than a RWD MG Cyberster and 620 kg (1,370 lbs) down on MG’s AWD variant.

The Cyberster already seemed more like a mini Mercedes SL than a hardcore sports car, and those numbers, plus the SC-01’s front and rear pushrod suspension only underline the impression.

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Power comes from dual electric motors producing a combined 429 bhp (434 PS / 320 kW), enough to launch the SC-01 to 62 mph (100 kmh) in a claimed 2.9 seconds.

A 60 kWh battery gives the car a quoted 311-mile (500 km) range on the optimistic CLTC cycle, so reckon on more like 270 WLPT miles (435 km) and even less if you’re driving it like you’re supposed to.

Minimal Screen Tech

Inside, the SC-01 might surprise you even more. There’s no massive touchscreen wall of the kind you might expect from a modern Chinese EV. Instead you get a single driver display and physical climate controls.

In other words, it feels like someone built it for people who actually enjoy driving, and plan to be driving too hard to spend precious moments hunting for a switch on a digital display.

How Much will it Cost?

Exact Euro prices and an on-sale date are still TBC, but according to Car News China, the car may launch at around 500,000 yuan, which comes to around $72,000, €61,000, or £53,000. That’s a significant step up from its domestic Chinese price of 229,800 yuan, or roughly $33,000 / €28,500 at current exchange rates.

Still, that would put it at a competitive advantage to the new generation of electric sports cars from Porsche, Alpine, and Lotus, some of which are still years away, and are sure to cost more.

SC-01