Beijing: Chinese technology company Xiaomi has unveiled its new Sky Nomad sport utility vehicle (SUV) series, marking its latest expansion into the automotive sector as growth slows in its core smartphone business.
Announced by CEO Lei Jun, the new lineup, branded Xiaomi Pengcheng in Chinese, will consist of ‘smart, versatile, and spacious’ extended-range electric vehicles (EREVs). A teaser image of one of the upcoming SUVs accompanied the announcement.
EREVs combine features of plug-in hybrid and battery-electric vehicles. They use a combustion engine to generate electricity, extending the vehicle’s driving range while retaining electric propulsion.
Today we're announcing Xiaomi EV's second product series: Xiaomi SkyNomad.
The Xiaomi SU7 and Xiaomi YU7 are positioned as "the driver's car". Xiaomi SkyNomad is positioned as "an intelligent, reconfigurable, large-space SUV". Different product lines, two answers to different…
— Lei Jun (@leijun) July 9, 2026
The launch marks Xiaomi’s entry into another fast-growing vehicle segment after introducing its SU7 sedan and YU7 crossover, both of which have helped transform the company’s electric vehicle division into a major source of revenue over the past two years.
Xiaomi entered the automotive industry to diversify its business as global demand for smartphones and home appliances matured. However, the company continues to face significant investment costs and relatively lower profit margins in the automotive sector.
The company positions its electric vehicles as high-tech alternatives to Tesla’s offerings, with the SU7 and YU7 competing directly against the Model 3 and Model Y.
According to data from Chinese automotive information platform DCar, Xiaomi had delivered 258,232 YU7 crossovers in China since the model’s launch in June 2025, compared with 471,207 Tesla Model Y vehicles sold during the same period.
While Xiaomi has secured strong orders for its current vehicle lineup, it faces slowing demand in China’s domestic market and has yet to begin exporting its vehicles. The company plans to enter the European market next year.
Commenting on the company’s vision, Lei Jun remarked that modern consumers increasingly view their vehicles as ‘a second home’ rather than simply a mode of transportation, highlighting Xiaomi’s focus on creating intelligent and comfortable in-car experiences.
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