Xiaomi introduces the Sky Nomad, a square-shaped SUV lineup aimed at capturing the market for family cars in China.

      Xiaomi has launched a new initiative in its rapid entry into the car manufacturing sector, announcing on Thursday a new SUV series named Sky Nomad and providing the first comprehensive glimpse at the boxy family vehicle that will spearhead it.

      This development positions the smartphone manufacturer directly in China’s most profitable car segment, moving away from the sporty image associated with its SU7 and YU7 models. The firm’s electric vehicle division referred to Sky Nomad as its second product line following the SU7/YU7 series, portraying it as an “intelligent, transformable large-space SUV.” In China, the series will be marketed under the name Xiaomi Pengcheng.

      Founder and CEO Lei Jun clearly distinguished between the two vehicle families, describing the SU7 and YU7 as “driver’s cars” while presenting Sky Nomad as a mobile living environment. He indicated that the vehicle should adapt to its owners' requirements, transforming when parked into “a studio for one, a café for two, a reception area for three, or a playground for the entire family.”

      Lei noted that the range has been refined over three and a half years on a brand-new platform, the Xiaomi Kunlun architecture, which the company began developing from scratch in early 2023. He mentioned features like a completely flat floor and long-rail seating that allow for interior reconfiguration.

      The first model, internally referred to as Kunlun N3 and anticipated to debut as the N90, is a full-size SUV measuring over 5.3 meters in length with a 3.1-meter wheelbase. Unlike Xiaomi's previous vehicles, it is not a purely battery-electric model. Instead, the N90 will be an extended-range electric vehicle, utilizing a 1.5-liter turbocharged engine solely as a generator that does not power the wheels. Coupled with a battery pack exceeding 70 kWh, it is rated for 400 to 500 km of electric-only range and over 1,500 km combined, according to reports from Chinese and specialist media.

      The design represents a significant departure from Xiaomi’s elegant sedans, featuring a rugged, upright shape, a roof-mounted lidar unit, and electrically deployable steps. Configurations for five and seven seats are anticipated, with the seven-seater reportedly offering a built-in rooftop tent tailored for China’s burgeoning camping market.

      Pricing details haven't been confirmed, but predictions suggest that it might start at around 200,000 yuan (approximately $29,400), as per the Chinese source 21jingji. This pricing strategy would undercut the Li Auto L9 and Huawei-backed Aito M9, both priced above 250,000 yuan and dominating the extended-range market, where seven of the previous year’s ten best-selling models originated from these brands.

      The timing is intentional. China’s Ministry of Industry and Information Technology gave Xiaomi the green light to manufacture extended-range vehicles at its Beijing facility on June 10, eliminating the last regulatory obstacle for a company that had only produced battery-electric vehicles until then.

      Xiaomi urgently needs this new line to succeed, setting a target of 550,000 vehicle deliveries by 2026, an increase of about 34% from last year’s approximately 410,000, yet having only delivered 185,055 cars in the first half of the year, which is about one-third of that target. Closing the gap would require an average of over 60,000 deliveries monthly for the remainder of the year, a pace that remains unproven.

      The appetite for Chinese electric vehicles has expanded well beyond the mainland, with positive reviews of models from BYD, Xiaomi, and Zeekr circulating on U.S. social media despite high import tariffs. However, the family SUV market in China is where profit margins are significant, and thus far, it has been primarily left to competitors.

      It remains somewhat unclear whether Sky Nomad is intended as a standalone sub-brand or simply a new product line, as Lei chose not to clarify this. Meanwhile, the company continues to introduce convenience features for current owners, such as a robotic charging arm for home garages, and indicated that the SUV will be launched “soon” in the latter half of the year.