Xiaomi Challenges Luxury EV Giants with New Customized Models in China

Published: 09 Oct 2025

Author: Precedence Research

Share :

Xiaomi is aggressively entering the luxury electric vehicle (EV) market, directly competing with established luxury brands like Porsche. With a price tag of approximately 529,900 yuan (roughly USD 74,900), the Chinese tech company recently unveiled a new customization service for its flagship SU7 Ultra electric sedan. Premium accessories, such as 24-carat gold hood badges, customized interiors, and custom-colored forged wheels, can now be purchased for up to 100,000 yuan to enhance a car's features. With this move, Xiaomi is demonstrating its desire to expand beyond its current position as a tech and smartphone giant and enter the luxury car market, which European companies have historically dominated.

The way Xiaomi is fusing cutting-edge EV technology with upscale design is what makes its approach so remarkable. Although the SU7 Ultra is significantly less expensive than Porsche's Taycan, which retails for nearly 918,000 yuan, Xiaomi's model is a strong rival due to its performance features and design inspiration. Due to its sporty yet sophisticated design, the company's next SUV, the YU7 Max, is also being compared to the Ferrari Purosangue. With these high-end choices at affordable prices, Xiaomi aims to attract customers who desire performance and exclusivity without paying a European premium. 

A growing trend among Chinese automakers is to shift from affordability to aspiration, as highlighted by this move. Through innovation and value, companies such as BYD and Nio have already completely transformed the local EV market. Xiaomi is currently targeting affluent customers who prioritize comfort, design, and customization. A thorough awareness of shifting Chinese consumer preferences, where affluent consumers increasingly value uniqueness and upscale experiences over mass-market appeal, is reflected in the new customization service.

However, Xiaomi’s foray into the luxury EV market won’t be without challenges. Maintaining craftsmanship quality, managing supply chains for premium materials, and sustaining profit margins on these high-end models will test its operational strength. Still, if executed well, Xiaomi could redefine luxury mobility in China, proving that a domestic brand can deliver the same prestige, performance, and personalization once exclusive to Porsche and other Western icons.