Xiaomi’s CEO Surprises By Recommending Tesla And Other Brands After Historic Demand For The YU7 SUV Creates A 14-Month Waitlist
Xiaomi has reached an impressive milestone with its new electric SUV YU7. In just 18 hours, it received 240,000 orders. The result was a drastic increase in the wait time for the base model, which now reaches 14 months.
Lei Jun, the company’s founder and CEO, surprised many by taking an unusual stance. He advised customers in a hurry to purchase cars from other brands, according to Bloomberg.
This situation is reminiscent of episodes in the tech world, such as the high value of used PlayStation 5 consoles during their initial scarcity.
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A Break in Corporate Communication
Interestingly, Lei directly recommended models that compete with the YU7. He mentioned the Tesla Model Y, its direct rival, as well as the Xpeng G7 and Li Auto i8.
This attitude breaks with the tradition of Chinese corporate communication, where brand loyalty is nearly untouchable.
On Weibo, he stated: “If you need to buy a car quickly, other electric models made in China are quite good.” His remark reinforces a tone of sincerity rarely seen in the automotive sector.
Production Limitations And Unprecedented Demand
Even after completing the second phase of its factory in Beijing, Xiaomi faces barriers in meeting demand.
The goal is to reach 10,000 units per month in two months and 20,000 in five months. Currently, weekly production stands at 1,590 units.
The YU7, with a base price of 253,500 yuan (around R$ 190,500), offers 835 kilometers of range and charges to 80% in 13 minutes. These numbers have helped create a demand that is difficult to meet in the short term.
Strategy Or Calculated Vulnerability?
By admitting limitations and suggesting alternatives, Lei Jun builds an image of transparency. This contrasts with the industry’s standard, which typically downplays issues to avoid losing sales.
In Chinese business culture, where “mianzi” — prestige and reputation — is vital, publicly acknowledging failures is a rare act.
Lei bets that this honesty will weigh more with consumers than unfulfilled promises.
Comparisons With Other Giants
Tesla, in 2016, had wait times of up to three years for the Model 3. Toyota, in 2022, recorded four-year delays in Japan for the Land Cruiser. However, none of these companies advised customers to seek competitors.
In July, the website 12365auto.com recorded 95 complaints about the YU7, almost all regarding delivery times.
Even so, the volume of reservations is approaching Tesla’s semi-annual sales in China — 265,400 units in the first half.
A Market In Fierce Competition
The success of the YU7 reinforces that the battle for electric cars is centered in China. Local brands not only compete on price but also on real advancements in range, charging time, and user experience.
Lei Jun’s recommendation is both bold and strategic. It shows that Xiaomi can forgo immediate sales because it trusts in the value of its product.
And, in a market full of unfulfilled promises, this sincerity may be the brand’s greatest weapon.
With information from Xataka.
