Xiaomi receives approval for long range electric vehicles and plans large SUV to compete with Li Auto
June 11, 2026
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Key Takeaways
Xiaomi has received regulatory approval to produce extended-range electric vehicles (EREVs) in China, potentially increasing competition in the Canadian EV market and introducing new models eligible for the Canadian government's iZEV incentives and provincial rebates.
The first range-extended model, the Kunlun N3, is a full-size SUV with a 70+ kWh battery offering 400-500 km of electric range, and could be priced competitively in Canada, potentially under $70,000, making it an attractive option for Canadian buyers.
Xiaomi plans to launch four new models in 2026, including two extended-range SUVs, with a delivery target of 550,000 units, and Canadian buyers can expect to see new models from Xiaomi in the near future, with potential Canadian pricing and availability to be announced, potentially benefiting from the $5,000 iZEV rebate and additional provincial rebates.
Xiaomi Expands into Extended-Range Electric Vehicles in China
Xiaomi has received regulatory approval from China's Ministry of Industry and Information Technology (MIIT) to produce extended-range electric vehicles (EREVs), marking a significant expansion beyond battery-only EVs. This move is expected to increase competition in the Canadian EV market, particularly with the popularity of EREVs in China, and may lead to the introduction of new models in Canada, potentially eligible for the Canadian government's iZEV incentives and provincial rebates.
Targeting the Family-Oriented SUV Segment
The first range-extended model, codenamed "Kunlun N3," is a full-size SUV that targets Li Auto's dominant L9. With a 70+ kWh battery offering 400-500 km of electric range, the Kunlun N3 is poised to compete directly with the L9 on size and capability. If introduced in Canada, the Kunlun N3 could be priced competitively, potentially under $70,000, making it an attractive option for Canadian buyers, especially with the available federal and provincial incentives, such as the $5,000 iZEV rebate and additional rebates offered by provinces like British Columbia and Quebec.
Broader Product Blitz
Xiaomi plans to launch four new models in 2026, including two extended-range SUVs (five-seat and seven-seat variants). The company has set a 2026 delivery target of 550,000 units, up 34% from 2025. While the pace so far suggests that target is ambitious, getting two entirely new EREV models to market in the second half of the year would provide a much-needed volume boost. Canadian buyers can expect to see new models from Xiaomi in the near future, with potential Canadian pricing and availability to be announced.
Strategic Pivot
Adding extended-range powertrains is a strategic pivot for Xiaomi, as EREVs have become enormously popular in China, particularly for large family SUVs where range anxiety remains a barrier. This move makes sense for Xiaomi, as the company has proven it can build compelling pure EVs, but there's a massive segment of buyers who want large family SUVs with 1,000+ km of combined range, and pure BEVs still can't fully serve that need. With the introduction of EREVs in Canada, buyers can expect to see more options for long-range electric vehicles, with the added benefit of Canadian incentives and rebates.
New Sub-Brand Approach
The "Skynomad" sub-brand approach is interesting, as it signals Xiaomi wants to separate the sporty, tech-forward identity of the SU7/YU7 lineup from the family-oriented positioning of the EREV models. This approach may be used in the Canadian market as well, allowing Xiaomi to target different segments of the market with distinct branding and marketing strategies. As the Canadian EV market continues to grow, with more models and brands available, buyers can expect to see a wider range of options, including EREVs, with competitive pricing and incentives.
