Investing.com-- Xiaomi (OTC: XIACF ) Corp (HK: 1810 ) is set to unveil its first SUV vehicle, the YU7, this week, marking a significant step in its expansion into China’s competitive EV market.

The YU7, positioned to rival Tesla’s (NASDAQ: TSLA ) Model Y, will be unveiled at Xiaomi’s new product launch event on May 22.

The YU7 features a dual-motor all-wheel-drive system delivering 681 horsepower and a top speed of 253 km/h. Its design includes a 3,000mm wheelbase and a length of 4,999mm, making it larger than the Model Y.

This launch follows the success of Xiaomi’s SU7 sedan, which has surpassed 100,000 deliveries since its March 2024 debut.

However, the company faces challenges, including a recent decline in SU7 orders due to safety concerns and regulatory scrutiny over its advanced driver-assistance systems.

Hong Kong-listed shares of the company were trading 1% higher as of 05:09 GMT on Monday.