The automotive industry is giving us not-so-subtle clues about its changes and the baton it picks up. China as an influential country in this sector It is taking more and more shape. Just two years ago, dethroning the Tesla Model 3 as the best-selling electric sedan might seem like a joke. However, this same thing has happened in China, as it is the Xiaomi SU7 the one that has taken that position from him, and even more of an achievement if we take into account that it is the first car from the now also automobile manufacturer.
Figures. Xiaomi’s SU7 reached 258,164 units sold in China during 2025, exceeding the 200,361 deliveries of the Model 3 by almost 30%, according to data of the Chinese Passenger Car Association (CPCA). It is the first time that a Chinese manufacturer has managed to take the lead from the Tesla model in its category since it began to be assembled in the Shanghai Gigafactory at the end of 2019.
Context. Xiaomi has only been delivering vehicles since March 2024, making this success even more significant. With a huge user base on its mobile devices and other technological products, the Chinese manufacturer has managed to boost sales of its first vehicle with very outstanding features such as its sophisticated autonomous driving system preliminary and software and technology that has become a reference.
There in China, the basic model of the SU7 has a price of 215,500 yuan (about 26,400 euros at the exchange rate), 9% cheaper than the Model 3, which starts at 235,500 yuan.
The decline of Tesla in China. Elon Musk’s brand has seen how its market share was plummeting from 16% in 2020, when it began producing the Model 3 in Shanghai, to 6.9% in 2024. Tesla’s total deliveries in the country fell 4.8% in 2025 to 625,698 units, representing just 4.8% of total electric vehicle sales in China. “Tesla’s Chinese competitors are able to make technologically comparable vehicles while offering them at lower prices,” counted Eric Han, from the consulting firm Suolei, to the SCMP media.
Lights and shadows of SU7. Despite Xiaomi’s great success, the SU7 has also been marked by tragedy. And in March 2025, three people died in an accident with an SU7 in the province of Anhui while the driving assistance system was activated, which led the Chinese authorities to tighten supervision over these technologies. In October, another fatal accident in Chengdu involving a SU7 Ultra once again generated debate, this time because neither the members of the vehicle, nor the people who wanted to help them, were able to open the doors of the burning vehicle.
New versions. The company presented in early January a renewed version of the SU7 with a range of more than 900 kilometers on a single charge, launched in pre-sale from 229,900 yuan (about 28,000 euros at the exchange rate). The top-of-the-range edition reaches 902 km of autonomy, compared to 830 km for the Pro version that currently exists.
Tesla doesn’t look good in Europe either. Things are starting to look ugly for Tesla, because if we are going to its overall figuresElon Musk’s company delivered 1.64 million vehicles in 2025, compared to 1.79 million in 2024, accumulating two consecutive years of declines. In Europe, where Tesla launched trimmed versions of the Model Y and Model 3 to defend volumes, registrations fell 25% in the eight main markets. Its share in our market fell from 2.4% to 1.7% until November, according to the European association ACEA.
Between the lines. Nor can we say that Tesla already has everything on order, especially considering that the Model Y remains the best-selling SUV in China. However, the ability of Chinese manufacturers to compete in the premium segment with technologically advanced vehicles and more competitive prices is redrawing the map of the sector.
We were recently talking about BYD surpassed Tesla as the largest electric vehicle manufacturer in the world, with 2.25 million units sold in 2025. Of course, the fragmentation of the Chinese market, which already has more than 50 electric vehicle manufacturers, and the fierce price warraise doubts about the long-term profitability of the sector.
Cover image | David von Diemar
In Xataka | There is an unexpected victim of the rise in RAM memory prices: the very modern connected cars
GIPHY App Key not set. Please check settings