Wednesday, April 9, 2025

Tesla humiliated by unknown car brand – sells many more cars

It's not just in Denmark that Tesla has lost ground. In China, Xiaomi, which has only just started building cars, is now selling better than the Model 3.

Tesla has been overtaken by an unexpected competitor in the Chinese market. Smartphone manufacturer Xiaomi has managed to sell more cars in China with its first electric car, the SU7, than Tesla's Model 3.

This is a remarkable achievement, as the Model 3 is one of Tesla's most popular models, especially in China, where the brand sold a whopping 21,046 units of the car in December 2024 alone.

The sales statistics cited by Cnevpost clearly demonstrate Xiaomi's success. The Xiaomi SU7, launched in March last year, has quickly gained popularity among Chinese consumers. Xiaomi's founder, Lei Jun, has publicly highlighted its sales figures in comparison to Tesla.

But that doesn't mean the SU7 is a car without flaws. Some would even say serious flaws. Xiaomi has been criticized for the car's undersized brakes, among other things.

Just like last year, it was revealed that the car is plagued with such extensive faults that not even the brand's workshops are able to fix them. Read more about it here .

The Chinese car market is characterized by fierce competition, and new models are constantly being launched. According to Cnevpost, in the fourth quarter of 2024, a new car model was introduced every single day. However, this figure should be taken with a grain of salt.

However, it is undeniable that Chinese car brands sell a lot of cars. So many, in fact, that some car brands have started building their own ships to transport the new vehicles. BYD recently launched the world's largest car cargo ship. It can carry 9,000 cars on board. And there are four new ships of this type on the way.

Here at home and in the rest of Europe, the EU is trying to shield the car industry with punitive tariffs on electric cars from China. But it also affects 'our' own brands. Seat/Cupra is one of the brands that has to pay the price for having an electric car built in China.

The new Cupra Tavascan is based on the Volkswagen MEB platform. That is, the technology from the Volkswagen ID.4. But it is built exclusively in China.

A smartphone manufacturer moving into the automotive market is not unusual in China. The Chinese automotive industry often has roots in the electronics sector, unlike the European automotive industry, which is traditionally based on mechanical technology.

That said, some of the Chinese car brands have already read at least some of the writing on the wall. Despite some success in Denmark, for example, Xpeng's CEO has no doubt that more car brands will do so within the next few years.

“I personally believe that there will only be seven major car companies left in ten years,” He Xiaopeng explained to The Straits Times.

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