XIAOMI(HK:01810) Feng Huang Wang·2025-09-25 12:25Core Insights - Xiaomi's founder Lei Jun revealed the story behind the second model of Xiaomi's electric vehicle, the YU7, during an annual speech, highlighting the significant market pressures faced at the project's inception in summer 2022 [1] - The internal debate within Xiaomi revolved around whether to follow market trends by developing a large space range-extended SUV or to pursue a unique path, ultimately leading to the decision to create a sporty SUV that caters to individual drivers while accommodating family needs [1][2] Market Context - The domestic new energy vehicle market was undergoing profound changes, with few successful cases in the pure electric sedan segment outside of Tesla, while range-extended large space SUVs gained significant market success [1] - The internal discussions at Xiaomi reached a boiling point, with team members resorting to "WeChat mutual blacklisting for 24 hours" to cool down and reflect on the direction of the project [1] Strategic Decisions - The decision to develop a sporty SUV was considered high-risk due to the lack of successful precedents in the mass market, typically dominated by luxury brands [2] - To address concerns about space practicality, the team optimized multiple design proposals, ultimately proving that the interior space would meet family user needs, which led to the project's formal approval [2] Product Development - A pivotal decision was made during the product definition phase to enhance the vehicle's competitiveness by renaming the originally planned 835 km long-range Pro version as the "standard version," effectively increasing the entry model's range by 215 km to 835 km without changing the price [2] - This strategic move significantly improved the product's market competitiveness, addressing the needs of long-distance SUV users [2] Conclusion - The success of the Xiaomi YU7 serves as a lesson that bold and unconventional decisions in the face of challenges can yield unexpected positive outcomes, as evidenced by the transition from the first model's market skepticism to the second model's promising performance [2]