BEIJING — Chinese technology company Xiaomi has announced a new SUV lineup called Sky Nomad, marking its latest step in an expanding push into the automotive industry as growth in its core smartphone business continues to slow.
The new extended-range electric vehicle series, known in Chinese as Xiaomi Pengcheng, will feature SUVs described as “smart, versatile, spacious,” according to CEO Lei Jun, who shared the announcement along with a teaser image on his Weibo social media account.
Extended-range electric vehicles, or EREVs, occupy a middle ground between traditional gas-electric hybrids and fully battery-powered cars. They use a combustion engine strictly as a generator to give the battery additional driving range rather than directly powering the wheels.
The announcement marks a new chapter for Xiaomi’s vehicle lineup, which previously focused on battery-only sedans and crossovers. The EREV category has been popularized by other automakers, including Li Auto.
Over the past two years, Xiaomi’s electric vehicle division — anchored by its SU7 sedan and YU7 crossover — has grown into a significant source of revenue for the company. The firm originally entered the auto market looking for new income streams as global demand in the smartphone and home appliance sectors leveled off.
Despite its growth, the car business continues to be a financial challenge for Xiaomi due to the high costs of investment and thinner profit margins compared to electronics.
Xiaomi positions its vehicles as a high-tech Chinese alternative to Tesla, with its SU7 and YU7 models competing directly against Tesla’s Model 3 and Model Y.
According to data from auto information and trading platform DCar, Xiaomi had delivered 258,232 YU7 crossovers in China through the end of June, following the model’s launch earlier in June 2025. Over that same period, Tesla sold 471,207 Model Y vehicles in the country.
While Xiaomi has secured orders for its existing models, the company has not yet begun exporting vehicles, unlike many of its Chinese rivals. The company has announced plans to enter the European market next year.
Lei offered insight into the vision behind the new SUV series, saying car owners want more than transportation. “They want their car to be a second home. For them, a car is not merely a means of transport but another moving space,” he said.
