Xiaomi Has a Luxury SUV for $31,000 That All Western Brands Should Fear

If there's one thing that can unite the world in these AI-troubled times, it's everyone's love of SUVs. For decades, the SUV has been the savior of the car world. Accounting for nearly half of all new sales worldwide, this is by some margin the largest segment in the global auto industry.

Sedans? Forget it. Ford doesn't even sell a traditional sedan in the US now. China still likes a sedan. About a third of all Chinese autos are in this form, compared with less than half that for the US. But Chinese carmakers know full well how much we love our chunky SUVs, so they are focusing their efforts to lure the Western world away from familiar marques.

Indeed, Xiaomi has just played its hand in this particular game, revealing the remaining details earlier this month in Beijing—including the all-important pricing—of its coming SkyNomad SUVs. Bentley and Range Rover may well have revealed their flagship electric SUVs, but both will be mightily worried about just how many scalps Xiaomi Auto's SkyNomad SUVs will take from them. If they're not, they should be.

Sedan to SUV

Trucks and SUVs represent more than 80 percent of new vehicle sales in America these days. Marc McGrath, US CEO of the automotive manufacturer Schaeffler Group, tells WIRED that one of the main reasons the company is developing its own solid-state batteries is to properly electrify the power-hungry trucks and SUVs Americans so dearly love. No one wants another F-150 Lightning U-turn.

The shocking success of the Jaecoo 7 is a prime example of SUV supremacy. This Chinese-made ride has enjoyed a staggeringly meteoric rise in the UK, going from an unknown newcomer in 2025 to now being one of the country’s best-selling new cars. Nicknamed the “Temu Range Rover,” it comes in both gas and hybrid flavors, and the company liberally uses the word “luxury” in its marketing, yet the vehicle costs just £29,210 (a little over $39,000).

These 7s are becoming ubiquitous on UK roads. My local Nissan dealer has swiftly dumped the Japanese brand and is now an official Jaecoo dealer, offering not just the 7, but the Jaecoo 5 and 8. I can't think of another auto brand that's enjoyed such a rapid rise.

Other Chinese brands are playing the same tactic in Europe, such as XPeng and BYD, but the big one incoming is Xiaomi Auto, set to launch in Europe in 2027, despite only making its first EV in 2024. Astonishingly, its SU7 Ultra claimed the title of “World’s Fastest Sedan” the very same year.