Xiaomi, now the world’s biggest phone maker, is expanding its automotive ambitions to Australia and Europe. The company has started hiring in Sydney to build its Australian automotive business, confirming that the highly anticipated SU7 SUV and SU7 sedan will arrive in these markets. Exports are set to begin in the second half of next year, with Australian and UK showroom launches expected in early 2028. Pricing will start from around $35,000 (~AUD 49,968), positioning the SU7 above the Tesla Model Y in the local market.
Xiaomi’s Entry into Australia and Europe
Xiaomi has begun recruiting in Sydney, signaling its intent to establish a strong automotive presence in Australia. The export timeline will see vehicles shipped from China starting in the latter half of 2025, but Australian showrooms are not expected to receive stock until early 2028. The UK is likely to be included in the same rollout wave. There are currently no official announcements for the US or Canada, though Canada remains a possibility.
SU7 SUV and Sedan: Specs and Features
The SU7 SUV, which famously received 240,000 orders in a single day in China—a record in the industry—will be the first model exported. The SUV is designed to compete directly with the Tesla Model Y, but is even larger externally, measuring five metres long, two metres wide, 1.6 metres tall, and boasting a three-metre wheelbase. The base model features a 96 kWh LFP battery, with a claimed range of 835 km CLTC (around 650 km WLTP). Power output ranges from 235 kW in the single-motor version to 508 kW in the top variant.
I have personally driven both the rear-wheel drive and all-wheel drive versions in China and found them to be excellent vehicles, though my experience with Xiaomi’s staff was less than ideal. The max version accelerates from 0 to 100 km/h in just 3.2 seconds, making it exceptionally quick for an SUV. The SU7 uses an 800-volt architecture, allowing for rapid charging: 10% to 80% in 12 minutes for the max, and 21 minutes for the less expensive versions. A performance-focused SU7 Ultra is also coming, likely exceeding 1,000 kW.
The SU7 sedan will also be exported, with a starting price of $31,000 (~AUD 44,257) in China and a claimed range of up to 900 km. Both the SUV and sedan are expected to appeal to buyers seeking high performance and long range.
Pricing and Market Positioning
Unlike BYD and MG, which entered Australia with budget-friendly models, Xiaomi’s export strategy focuses on mid to high-end vehicles. This means the SU7 will likely be priced above the Tesla Model Y in Australia and Europe. In China, the base SU7 SUV starts at $35,000 (~AUD 49,968), while the sedan begins at $31,000 (~AUD 44,257). Xiaomi’s decision to target the premium segment marks a different approach from other Chinese automakers.
Production and Export Plans
Xiaomi has responded to a dramatic reduction in domestic waiting lists, which dropped from two years to just a few weeks, likely due to order cancellations. The company delivered 410,000 cars last year and aims for 550,000 this year, but faces headwinds as China’s car market has contracted by 25% this year. Xiaomi’s own sales were down 5% in September. The export strategy includes building right-hand drive versions for Australia, the UK, Japan, Thailand, Malaysia, New Zealand, and South Africa, requiring a dedicated production line.
Notably, Ford CEO Jim Farley was so impressed with the SU7 that he had one shipped to Chicago and reportedly did not want to return it. Soon, Australians and Europeans won’t need to import these vehicles, as local availability is on the horizon.
What This Means for Buyers and the Market
Xiaomi’s entry into the Australian and European markets with the SU7 SUV and sedan will shake up the mid to high-end EV segment. While the vehicles offer impressive specs, performance, and range, buyers should expect pricing above current Tesla Model Y levels. The company’s focus on premium models contrasts with the budget strategies of other Chinese brands, potentially attracting a different segment of buyers. With a dedicated right-hand drive production line and local hiring underway, Xiaomi is serious about its global automotive ambitions.
