Xiaomi will not bring new YU7 to China's largest auto show, exec says

SHANGHAI (Reuters) - Xiaomi does not plan to showcase its upcoming YU7 electric SUV at China's largest auto show next week, deflating widespread anticipation among visitors keen to catch a glimpse of the would-be challenger to Tesla's Model Y.

Xiaomi's Vice President Li Xiaoshuang said the company would only take its SU7 and SU7 Ultra vehicles to the Shanghai auto show on social media platform Weibo on Tuesday.

Asked by users about the YU7 at the show, he said it would not be featured. "Don't be anxious, when it arrives it will be in its best state," Li wrote in one of the responses.

Several industry bloggers have in the weeks leading up to the show published articles saying that the YU7 would be a highlight of the event, if it was shown.

Xiaomi founder and CEO Lei Jun has previously said the plan was to officially launch the YU7 in June or July but has been regularly posting pictures of the SUV on his widely followed Weibo account, which has more than 26.5 million followers.

Analysts have said they expect the YU7 to be the strongest competitor in the Chinese market for Tesla's best-selling Model Y.

Xiaomi began manufacturing EVs last year with the launch of the SU7 sedan after selling smartphones, household appliances and smart gadgets for most of its 15-year history. Since December, the SU7 sedan has outsold Tesla's Model 3 on a monthly basis.

The company was thrust into controversy last month after a fatal accident involving an SU7, which caught fire after hitting a roadside pole at a speed of 97 km/hr while its advance driving assistance system was switched on, killing the driver and two other passengers.

The accident triggered wide discussions about EV safety in China and the country's state media has since urged automakers not to overplay smart-driving capabilities.

(Reporting by Zhang Yan, Brenda Goh; Editing by Saad Sayeed)