CMB International Securities: It is expected that Xiaomi's car sales will reach 350,000 to 400,000 units this year, and YU7 may become the next explosive model.

CSC International Securities released a research report stating that Lei Jun, the founder of Xiaomi Group-W, announced recently that the group's first SUV model YU7 will be launched at the end of this month and is expected to be on the market in July. The bank believes that the potential for YU7 to become a popular model is great, continuing the growth trend of SU7, and Xiaomi Cars is expected to double its growth next year. The report indicates that the demand for Xiaomi SU7 remains strong unaffected by price wars. YU7 may have a greater potential to become a hit model than SU7, as its user base size is three times that of SU7 at the time of its technology release. The bank predicts that the starting price of YU7 will be approximately 250,000 RMB, with its main direct competitors being Tesla Model Y, NIO-SWEC6, and Xiaopeng Motors-W's G7. The bank forecasts that the stable monthly sales volume of Xiaomi YU7 will reach 30,000 to 40,000 units, while Xiaomi Cars' sales this year will reach 350,000 to 400,000 vehicles. SU7 + YU7 is expected to challenge 50,000 to 60,000 vehicles, with the potential to reach 700,000 to 800,000 vehicles next year. Xiaomi Group is considering launching new car models next year and is expected to break through 1 million units if sufficient production capacity is released.