Chinese SUVs Are Coming for the Global Market—and Xiaomi Wants In

If there is one thing that can unite the world in an age of AI disruption, it may be our shared love of SUVs. For decades, SUVs have been the automotive industry’s great success story. They now account for almost half of all new-car sales worldwide, making them the largest segment of the global automotive market.

Sedans? Forget it—at least in the United States. Ford does not currently sell a traditional sedan in the country. China still has a strong appetite for sedans, which make up approximately one-third of its cars, but that figure is less than half the US share. Chinese automakers understand how much Western buyers love large, rugged SUVs, and they are increasingly focused on pulling those customers away from familiar brands.

Xiaomi has now entered that competition. The company revealed more details about its upcoming Xiaomi Auto model earlier this month in Beijing, including important pricing information for the SkyNomad SUV. Bentley and Range Rover may have unveiled flagship electric SUVs, but both brands will be watching closely to see how much market share Xiaomi can take from them. The SkyNomad SUV could become a serious challenger.

Why Chinese automakers are targeting SUVs

More than 80 percent of new-vehicle sales in the United States are now trucks and SUVs. Mark McGrath of Schaeffler Group told WIRED that the company is developing its own solid-state battery partly to help electrify the power-hungry trucks and SUVs that American buyers prefer. The popularity of these vehicles makes a reversal such as the Ford F-150 Lightning’s a particularly important concern.

Jaecoo 7 shows how quickly Chinese SUVs can gain ground

The rapid success of the Jaecoo 7 offers a clear example of the appeal of Chinese SUVs. The Chinese-made model went from being an unknown newcomer in the UK in 2025 to one of the country’s best-selling new cars. Nicknamed the “Temu Range Rover,” it is available with petrol and hybrid powertrains and costs £29,210—just over $39,000—despite the brand’s use of “luxury” in its marketing.

Jaecoo 7 models have become increasingly common on British roads. One local Nissan dealer quickly dropped the Japanese brand and became an official Jaecoo dealer, selling the Jaecoo 7 along with the Jaecoo 5 and 8. Few other car brands appear to have achieved such a rapid rise.

Xiaomi Auto is preparing for Europe

Other Chinese manufacturers, including XPeng and BYD, are pursuing a similar strategy in Europe. Xiaomi Auto is expected to launch its first EV in Europe in 2027, even though the company only began building cars in 2024. Its SU7 Ultra has already earned the title of “world’s fastest sedan”. Now, with the SkyNomad SUV, the technology company is taking aim at the most important vehicle category in the global market.