Lei Jun Admits Mistake in YU7 Product Line Decision

[Company Update] Lei Jun publicly acknowledged that canceling the YU7 Standard Edition was a wrong decision.

Core Development: YU7 Reintroduces Standard Edition to Compete Directly with Model Y

Lei Jun admitted during Xiaomi's Human-Car-Home Ecosystem Launch Event that abruptly canceling the YU7 Standard Edition last year was a major mistake. The newly reintroduced Standard Edition starts at RMB 233,500, RMB 20,000 lower than the current Long Range version (RMB 253,500). Battery capacity has been reduced from 96.3 kWh to 73 kWh, and CLTC range drops from 835 km to 643 km.

Strategic Insight: Misaligned Competition Led to "Two Wins, Eight Losses"

Lei Jun reflected that 70% of Model Y customers choose the 593 km range variant, and Xiaomi lost ground in this critical segment due to the absence of a directly comparable model. Over the past 10 months, the YU7’s record against the Model Y stands at only two wins and eight losses, primarily because the product lineup failed to establish direct standard-vs-standard and long-range-vs-long-range competition.