Xiaomi's SU7 Ultra electric vehicle recently experienced a dramatic downturn in sales, recording fewer than 50 units sold in December 2025. This sharp decline follows a period of robust performance where the company had even achieved its first-ever profit from EV sales earlier in the year. The broader context for this shift includes increasing difficulties for Chinese EV brands in North American markets due to tariff policies, alongside a general deceleration in electric vehicle adoption globally, highlighted by Tesla's sales drop in Europe.
The current market landscape for electric vehicles is complex, marked by intense competition and evolving consumer preferences. While some manufacturers are exploring new market entries and partnerships, others are grappling with maintaining sales momentum and navigating geopolitical trade challenges. The performance of individual EV models, such as the Xiaomi SU7 Ultra, serves as a barometer for these larger industry trends.
Xiaomi's Electric Vehicle Performance Trajectory
Xiaomi's SU7 Ultra electric vehicle saw a steep drop in sales during December 2025, with only 45 units reported as sold in China. This figure represents a significant decline from the consistent sales volumes of 2,000 to 3,000 units per month that the vehicle maintained from March through August of the same year. Despite this recent slump, the cumulative sales for the SU7 Ultra have managed to surpass CEO Lei Jun's initial target of 10,000 units. The abrupt decrease began in September, when sales fell to 488 units, indicating a rapidly changing market dynamic for the Chinese tech giant's automotive venture.
The initial success of the SU7 Ultra, which contributed to Xiaomi's first profitable quarter from EV sales in Q3 2025, underscored the company's strong entry into the competitive electric vehicle sector. However, the subsequent sales collapse in the final quarter of the year suggests potential challenges related to market saturation, increased competition, or shifts in consumer demand. This volatile performance highlights the difficulties even established brands face in sustaining momentum within the fast-evolving EV landscape, particularly as new models and brands continuously enter the market and economic factors influence purchasing decisions.
Global EV Market Dynamics and North American Entry Barriers
The global electric vehicle market is currently undergoing significant shifts, with Chinese EV manufacturers facing notable obstacles in North America. The United States has largely restricted the entry of Chinese automakers through tariffs, aiming to protect domestic industries and address trade imbalances. However, neighboring Canada has taken a different approach, with Prime Minister Mark Carney's recent agreement allowing a substantial number of Chinese EVs into the country at reduced tariff rates. This divergence in policy could create new pathways for Chinese brands to access the North American market indirectly.
In this dynamic environment, other Chinese automakers are also eyeing expansion. Geely Automobile Holdings Ltd., for instance, is reportedly considering entering the U.S. market within the next two to three years, potentially with its Zeekr brand. Zeekr is notable for manufacturing Alphabet Inc.'s Waymo 'Ojai' Robotaxi, which is currently undergoing testing in the U.S. Meanwhile, even established players like Tesla have not been immune to market downturns; the company experienced a significant sales decline in Europe during December 2025, with a 20.2% year-over-year drop in units sold. These developments underscore the increasing complexity and competitiveness of the global EV industry, where geopolitical factors, market entry strategies, and shifting consumer preferences all play critical roles.