Xiaomi SU7 Surpasses Tesla Model 3 in Sales in Mainland China for the First Time
In 2025, the Xiaomi SU7 managed to outsell the Tesla Model 3 in the Chinese electric vehicle market. This marks the first time a local Chinese brand has displaced a Tesla model from the leading position in its key overseas market.
According to data from the China Passenger Car Association (CPCA), 258,164 Xiaomi SU7 electric vehicles were sold in China in 2025. Tesla Model 3 sales were nearly 30% lower, at 200,361 units.
Until this point, the Tesla Model 3 had held the top spot among premium electric vehicles in China since late 2019. These cars are assembled at Tesla's Shanghai factory in the Lingang Free Trade Zone, which allowed the company to respond quickly to demand and maintain competitive prices.
Chinese analysts highlight a key factor in the Xiaomi SU7's success: its pricing strategy. The manufacturer managed to offer buyers functionality comparable to the Tesla Model 3 at a more attractive cost. Furthermore, several widely publicized accidents involving the SU7 did not significantly impact its market performance.
Despite Xiaomi's local success, Tesla still dominates the overall Chinese electric vehicle market. The company sells over 600,000 cars annually in China. The most popular model remains the Tesla Model Y — this electric SUV even outsells traditional gasoline-powered cars.