China's Xiaomi unveils SUV series dubbed Sky Nomad

BEIJING, July 9 (Reuters) - China's Xiaomi ‌on Thursday ​unveiled an ​SUV series named Sky Nomad, accelerating the technology company's push into automobiles as growth slows in its mainstay smartphone market.

The extended-range ‌electric vehicle (EREV) series, branded Xiaomi Pengcheng in Chinese, will comprise "smart, ⁠versatile, spacious" SUVs, CEO Lei Jun said on his Weibo micro-blog account along with a ‌teaser poster of one of the ‌vehicles.

EREVs are a type of plug-in hybrid that sit between conventional petrol-electric hybrids and battery-only vehicles, using a combustion engine as a generator to ​extend battery driving range.

Xiaomi's announcement represents expansion beyond battery-powered sedans and crossovers into a category popularised by models from automakers such as Li ⁠Auto.

With its SU7 sedan and YU7 crossover, Xiaomi's EV business has become a revenue pillar over the past ​two years.

The consumer electronics firm expanded into cars in search of new revenue drivers as growth slowed worldwide in the ​mature smartphone and home appliance markets.

However, the ‌auto business remains costly for the tech firm due to the heavy investment needed and narrower profit margins.

Xiaomi pitches its ⁠cars as a high-tech Chinese alternative to models from Tesla, pitting its SU7 and YU7 lines against the U.S. EV maker's Model 3 and Model Y.

As of the ⁠end of June, Xiaomi had delivered 258,232 YU7 crossovers in China since the model's June ​2025 launch, compared with 471,207 Model Y vehicles sold in the country over the same period, showed data from auto information and trading platform DCar.

Xiaomi has locked-in orders for ‌existing models but faces a slowing domestic market and has yet to export its vehicles, unlike many domestic peers. ‌The company plans to launch vehicles in Europe next year.

"They (car owners) want their car ⁠to be a second home. ‌For them, a car ​is not merely a means of transport but another moving space," Lei said.

(Reporting by Ju-min Park and Qiaoyi Li; Editing by ‌Christopher Cushing)

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