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The Xiaomi YU7, the tech giant's second production model, began deliveries on July 6, but demand for the vehicle, particularly the high-spec YU7 Max, has far exceeded production and delivery capacity, leading to a resale premium in China's second-hand car market.
Within an hour of launch, Xiaomi received over 280,000 pre-orders for the YU7, indicating intense buyer interest. Delivery delays for the YU7 Max have been reported to stretch up to 37 weeks, and even longer for other variants.
Over 80 near-new YU7 vehicles, mostly the Max trim, are listed on second-hand platforms at prices from about 350,000 to 390,000 yuan, exceeding the official retail price of around 329,900 yuan for the Max version by 10,000 to 20,000 yuan. This premium is due to speculative buying by scalpers and professional dealers who have taken advantage of the long waits by flipping purchase rights or vehicles shortly after acquisition.
The Ministry of Industry and Information Technology of China is reportedly considering rules to prohibit vehicle resale within six months of registration to curb such arbitrage and speculative reselling.
The Xiaomi YU7 Max's resale premium arises from a classic supply-demand imbalance combined with speculative behavior motivated by the lengthy delivery schedules and the vehicle’s favorable market positioning compared to competitors like Tesla’s Model Y.
The Xiaomi SU7, the SUV counterpart to the YU7, ranked highest in one-year resale value among all models in China, according to a report by the China Automobile Dealers Association and valuation platform Jingzhengu, with a resale value of 88.91%.
Official retail prices for the YU7 range from 253,500 to 329,900 yuan, while prices for resale YU7 units range from 350,000 to 390,000 yuan.
Xiaomi Chairman and CEO Lei Jun shared the report on social media, thanking supporters. The company has also implemented restrictions on orders to address concerns about scalping.
Typical mileage on resale YU7 units is under 100 kilometres, suggesting that many of these vehicles have not been driven extensively before being resold.
The Xiaomi SU7 faced a similar resale markup period after its debut. Hyundai reportedly benchmarks the Xiaomi SU7 at R&D centers in Korea, according to a report.
Sunday China Drive published an article questioning whether the BYD Tang L flagship SUV can challenge the Xiaomi YU7's hype. Delivery times for new YU7 orders are long, with the Standard version requiring 57-60 weeks, the Pro 49-52 weeks, and the Max 41-44 weeks from order lock to delivery. Over 80 Xiaomi YU7 units are currently listed for resale nationwide.
The intense interest in the Xiaomi YU7, as indicated by the influx of over 280,000 pre-orders, has resulted in a resale market for the vehicle, specifically the high-end YU7 Max, where prices range from approximately 350,000 to 390,000 yuan – a premium of 10,000 to 20,000 yuan over the official retail price. This phenomenon is influenced by the supply-demand imbalance due to production delays, as well as speculative buying from scalpers and dealers.
Gadget enthusiasts and tech buyers who prefer a lifestyle accentuated by the latest technology may find attractive options in the Xiaomi YU7 and the future Xiaomi SU7, given their favorable market positions and potential resale values compared to other brands such as Tesla's Model Y and the BYD Tang L.
