Xiaomi's range-extended SUV is exposed again, targeting Wenjie and Li Auto. Breaking through the encirclement is difficult with formidable rivals on all sides.
Following the launch of the SU7 and YU7, spy photos of Xiaomi's second SUV, codenamed "Kunlun N3," were exposed. Surprisingly, the Xiaomi Kunlun N3 doesn't have the sporty performance style of the Xiaomi YU7 at all. Its body shape is very square, instead bearing the resemblance of large SUVs like the Li L9 and the AITO M9.
Image source: Weibo @Delu Loves Driving
Referring to the neighboring Xiaomi SU7, the Xiaomi Kunlun N3 is positioned at least in the mid - large category, and it's very likely to adopt a three - row seat layout. Just a few days ago, Tesla officially announced its new six - seat SUV, the Model Y L. Is Xiaomi's third car also going to chase after Tesla?
Actually, it's not the case.
According to the Xiaomi research report released by Deutsche Bank in December last year, Xiaomi Auto will launch a large plug - in hybrid SUV in 2026. Moreover, there are recruitment information for supplier quality engineers for range extenders and engines on Xiaomi's recruitment website. All these signs indicate that the Xiaomi Kunlun N3 is a range - extended hybrid SUV, with a completely different target audience from the all - electric Tesla Model Y L.
This time, Xiaomi finally lets go of Tesla and turns its focus towards Li Auto and AITO.
Is an "unoriginal" design the prerequisite for being among the top five in the world?
As early as 2023, Lei Jun said that "in the future automotive market, only five automakers will remain. Annual sales of 10 million vehicles are the ticket to survival, and Xiaomi Auto aims to enter the world's top five within 15 - 20 years."
According to the data released by GlobalData, in 2024, only the Toyota Motor Group had annual sales exceeding 10 million vehicles. Although there are many more domestic brands in the top ten of the global annual sales list, even BYD, which had the best performance, only sold 4.27 million vehicles, still a long way from Toyota and Volkswagen.
In the domestic automotive market dominated by ordinary family users, the Xiaomi SU7 and Xiaomi YU7, which pursue a sense of sportiness and driving experience, have achieved unprecedented popularity and sales, and can definitely be regarded as two successful products.
However, if Xiaomi really wants to achieve its goal of entering the world's top five, it has to learn from Toyota and Volkswagen as soon as possible and launch more cost - effective and mediocre products.
Image source: Shot by Electric Vehicle News
Therefore, Electric Vehicle News isn't surprised that Xiaomi is launching a large - scale range - extended family SUV. Since it has already created the models it likes, it's time to build products that mainstream users want.
To be honest, most family users like the square body shape not for aesthetic reasons but for practicality. After all, such a design can maximize the storage capacity and the headroom for rear - seat passengers.
The spy photos of the Xiaomi Kunlun N3 don't seem to feature a similar lamp group design to the Xiaomi SU7 and Xiaomi YU7. However, as long as it looks "not bad" and has "adequate configurations," it should be able to gain the recognition of a large number of users.
Of course, the key to becoming the next Toyota lies in establishing a foothold in the overseas market.
Lei Jun said in a live broadcast on July 2nd that Xiaomi will consider going overseas in 2027, prioritizing serving domestic users. In December last year, he revealed that Xiaomi aims to introduce Xiaomi Auto to the European market before 2030.
Xiaomi Auto's overseas expansion plan is indeed much slower than other new - force brands. However, with the system advantage of the "human - vehicle - home ecosystem" and Xiaomi's popularity in technology, no one can guarantee that Xiaomi Auto won't replicate its domestic sales miracle in the overseas market.
According to the data released by the China Passenger Car Association, the retail sales of the domestic narrow - sense passenger car market last year were 22.892 million vehicles, a year - on - year increase of 5.5%. For Xiaomi to compete with major manufacturers like BYD, Geely, Volkswagen, Changan, and Toyota, relying solely on the domestic new - energy vehicle market obviously won't achieve its sales target. It can be said that the overseas market is the real springboard for Xiaomi Auto to become a major automotive manufacturer.
Image source: China Passenger Car Association
According to the plan, Xiaomi Auto will launch hybrid vehicles codenamed KL1 and KL2 in 2027. These two hybrid vehicles are very likely to focus on cost - effectiveness. If Xiaomi can capture more of the mainstream market share, it will have enough resources to explore the European automotive market before 2030. The Xiaomi Kunlun N3, with its traditional SUV body, is the first step for Xiaomi Auto to tap into the mainstream market.
Surrounded by competitors, the Xiaomi Kunlun N3 faces great pressure
Although the Xiaomi Kunlun N3 no longer targets Tesla, it won't be easy to replicate the success of the Xiaomi SU7 and Xiaomi YU7 in the family hybrid SUV market.
The main basis for this conclusion is that the Xiaomi Kunlun N3 faces not one but a group of competitors.
In the 200,000 - 300,000 - yuan all - electric sedan and all - electric SUV market, it's enough for Xiaomi to convince consumers that its products are better than Tesla's. However, in the high - end hybrid SUV market, there are already two "mountains" in the form of the AITO M series and the Li L series, and there are also strong new competitors like the Lynk & Co 900 and the Denza N9.
Image source: Li Auto
These four models each have their own advantages:
The AITO M series is supported by Huawei's intelligent technology and has excellent luxury configurations. The "family - friendly" nature of the Li L series is well - known and has become synonymous with comfortable travel, forming the basic sales volume for Li Auto. The Lynk & Co 900 and the Denza N9 have powerful performance, and their chassis configurations demonstrate the technical strength of major manufacturers.
Judging from the attitude of the previous two new models to "completely outperform" Tesla, the Xiaomi Kunlun N3 is very likely to achieve a high level in multiple fields, especially in terms of range. The pure - electric range of the Xiaomi SU7 and Xiaomi YU7 ranks among the top in their respective segments.
Xiaomi Auto has a good cooperative relationship with CATL. The Xiaomi Kunlun N3 is very likely to use CATL's latest battery technology, and its pure - electric range and comprehensive range are likely to be one of the main selling points.
Additionally, there's not - so - good news for Xiaomi Auto: the Xiaomi Kunlun N3 will be launched next year. By then, hybrid SUVs such as the IM LS9, Zhijie R9, XPeng G01, Zeekr 9X, and Voyah Taishan will have already been launched.
Among them, the IM LS9 will be the first to be equipped with CATL's lithium - hybrid AB battery and is likely to compete with models like the Li L9 in terms of range. By that time, the Xiaomi Kunlun N3 will have one less differential advantage, and the product's persuasiveness will naturally be weaker.
Image source: Ministry of Industry and Information Technology
Of course, these are all future scenarios. Looking at the current 200,000 - 300,000 - yuan hybrid SUV market, the Xiaomi Kunlun N3 also faces great competitive pressure.
This segment can be described as a gathering of elites. According to the sales data for June, the monthly sales of the AITO M8 and AITO M9 were 21,185 and 13,718 vehicles respectively. The monthly sales of four SUVs, the Li L7, Lynk & Co 900, AITO M7, and Li L9, all exceeded 4,800 vehicles. Meanwhile, the sales of ten models, including the Denza N9, Li L8, Wei brand Lanshan, and Zhijie R7, all exceeded 3,000 vehicles.
In other words, the demand in this segment is very high. Although there are leading sales models, new products launched by automakers can generally achieve decent sales.
This requires the Xiaomi Kunlun N3 to adopt a completely different product strategy from the previous two models: a comprehensive competition - oriented promotion method may be more effective than a "one - on - one" promotion method.
Production capacity is another hidden concern for the Xiaomi Kunlun N3
The Xiaomi Kunlun N3 is currently still in the testing phase. The product is likely to be launched at the end of this year, and next year will be the prime time for this range - extended SUV.
Xiaomi's two pure - electric vehicles have both become hits. To ensure that the production capacity of the Xiaomi SU7 isn't affected, Xiaomi Auto decided to launch the Xiaomi YU7 after the completion of the second - phase factory. Even so, the Xiaomi YU7 was still affected by the insufficient production capacity, selling only 2,234 vehicles in June. To surpass the Tesla Model Y in sales data, Xiaomi still needs to tap into its production capacity potential.
On June 19th, the Beijing Yizhuang Economic Development Zone announced that Xiaomi Jingxi Technology Co., Ltd. successfully won a plot of land in the Yizhuang New City, covering an area of 485,100 square meters, adjacent to Xiaomi's second - phase auto factory. Electric Vehicle News speculates that this plot may be prepared for the third model and also provide more resources for subsequent models.
However, Xiaomi's range - extender technology hasn't been implemented yet. Electric Vehicle News hopes that Xiaomi's range - extender technology can have the advantages of high quietness and high oil - to - electricity conversion efficiency that current mainstream models have. If it can bring more surprises, with Xiaomi's influence in the domestic market, the Xiaomi Kunlun N3 may indeed change the pattern of the hybrid family SUV market.
This article is from the WeChat public account "Electric Vehicle News", author: Electric Vehicle News, published by 36Kr with authorization.