Xiaomi enters EREV market with Kunlun YU7 SUV, challenging Li Auto L9

Xiaomi is preparing a new strategic move in the automotive market, making its first bet on extended-range hybrids. Following the success of its SU7 electric sedan and YU7 crossover, the company is expanding beyond pure electric vehicles to enter the EREV segment. This move directly addresses range anxiety, a problem that even fast charging hasn't fully solved. Pan Jutang from Xiaomi's investment division hinted at this development.

The project, internally codenamed Kunlun and expected to launch as the YU9, is a large seven-seat SUV. This marks a notable departure from the sporty image of the SU7, as the new vehicle will focus on families and long-distance travel. Its form factor resembles massive premium off-roaders like the Range Rover. The key feature is an EREV powertrain where wheels are always driven by electric motors, with a gasoline engine serving solely as a generator.

Reports indicate Kunlun will get a 1.5-liter turbocharged engine as a generator and an unusually large battery with a capacity of 70 to 80 kWh. This setup should allow the vehicle to travel up to 500 kilometers on electric power alone, with a total range potentially reaching 1,500 kilometers. Xiaomi is openly targeting the Li Auto L9, the current leader in the EREV segment, aiming to offer a car that feels like a full electric vehicle in the city while eliminating charging stops on highways.

Xiaomi's key differentiator from traditional automakers will be deep digital integration. Kunlun is essentially conceived as a "smartphone on wheels": its multimedia system will run on an automotive version of the Snapdragon 8 Elite and be tightly linked to HyperOS 3.0. Smart features will include synchronization with Xiaomi wearable devices to adapt cabin lighting and climate control based on the driver's condition.

While the new crossover primarily targets the Chinese market, Xiaomi is already laying groundwork for global expansion. The opening of a research center in Munich signals plans for an international launch of extended-range technologies in the next phase. With an ambitious goal of delivering up to 550,000 vehicles by 2026, the company clearly intends to replicate its smartphone success formula and compete in one of the auto market's most profitable segments.