China’s latest electric sedan is not just undercutting European luxury brands on price, it is starting to beat them at their own performance game. With the Xiaomi SU7 family, including the flagship Ultra variant, a Chinese smartphone maker is positioning a roughly $28,000 “Chinese Taycan” directly against Porsche’s halo EV and, increasingly, on Porsche’s home turf in Europe.

As I look at the data points piling up around the SU7, from Nürburgring lap times to collapsing German sports-sedan sales in China, it is clear this is no niche curiosity. It is a case study in how Chinese EV makers are using scale, software expertise, and aggressive pricing to pry open a segment that once seemed safely reserved for brands like Porsche.

Xiaomi’s first car and the rise of the “Chinese Taycan”

When Xiaomi unveiled the SU7, it was easy to dismiss the move as a tech company’s side project, yet the car’s positioning told a different story. The sedan arrived as a full-size, performance-focused EV, immediately compared to the Porsche Taycan in both silhouette and mission, and it quickly picked up the nickname “Chinese Taycan” in the local market. Chinese coverage of the launch in BEIJING described how, at the end of March, Xiaomi’s first electric vehicle, the SU7, ignited a wave of attention among domestic buyers who were already comfortable with the brand’s phones and gadgets.

What makes that comparison more than marketing chatter is the way the SU7 tracks Porsche’s formula while attacking its weak spots. Reporting from the Korean market notes that the SU7, often called the “Chinese Taycan,” mimics Porsche’s first all-electric model, the Taycan, but is priced at around 40 m Korean won, while the Taycan itself exceeds 100 million won. That gap, roughly a third of the German car’s price, is the foundation for the $28,000 figure that has stunned European executives who are used to six-figure stickers on high-performance EVs.

Performance credentials that embarrass the original

Price alone would not threaten Porsche’s turf if the SU7 were merely quick in a straight line, but the Ultra variant has started to rewrite the performance hierarchy. The Xiaomi SU7 Ultra prototype set a Nürburgring lap time of 6 minutes and 46.874 seconds, surpassing the Porsche Taycan Turbo GT on one of the world’s most demanding circuits. For a car built by a company better known for smartphones, that number is a blunt statement that Chinese engineering is no longer content to compete only on value.

The performance story does not stop at a single lap record. Detailed coverage of the SU7 Ultra’s development emphasizes that the record was achieved with a prototype, which signals that Xiaomi is still refining the package before full-scale export. Another report on the same Nürburgring run highlights how the Ultra delivers elite-level performance at a fraction of its rivals’ prices, contrasting the SU7 Ultra’s disruptive positioning with European EVs that can cost well over A$416,000 before on-road costs in markets like Australia. In other words, Xiaomi is not nibbling at the lower end of the segment; it is attacking the very top with numbers that resonate deeply among enthusiasts.

From Chinese streets to European circuits

What began as a domestic sensation is now being carefully staged for a global audience. Earlier coverage of China’s EV boom noted that Xiaomi’s SU7 launch helped fuel a broader wave of competition among Chinese brands, with policymakers in BEIJING framing this intensity as a way to accelerate decarbonization and push technology forward. That domestic crucible has given Xiaomi the volume and feedback loop it needs to refine the car before sending it abroad.

The next phase is already visible in Europe. Reporting on the Xiaomi SU7 Ultra describes it as a near clone of the Porsche Taycan that is ready for European roads and parading at Goodwood, the kind of venue where Porsche has long showcased its own icons. The same accounts stress how closely the Ultra’s proportions and design cues track the Taycan, right down to its stance and roofline, which makes its presence on European circuits feel less like a curiosity and more like a direct challenge on Porsche’s home stage.

Porsche’s squeeze in China and the price shock

While Xiaomi is moving outward, Porsche is under pressure in what was once one of its most promising growth markets. Reporting on the German brand’s position in China describes how Porsche is being squeezed out of the highly competitive Chinese market, with plummeting sales as local rivals catch up in technology and leap ahead on affordability. Analysts quoted in that coverage frame the situation as a potential first step toward a partial exit from segments where Chinese brands now dominate.

The SU7 sits at the center of that squeeze. Korean market analysis notes that the car, Priced at around 40 m Korean won, undercuts the Taycan, which exceeds 100 million won, by a margin that no amount of brand cachet can easily justify for younger buyers. When a car that looks and performs like a Taycan is available for less than half the price, the traditional logic of paying a premium for a European badge starts to erode, especially in a market where Chinese EVs are already seen as technologically advanced.

Western executives are already paying attention

The disruption is not lost on Western automakers, who are watching the SU7’s rise with a mix of admiration and anxiety. Ford CEO Jim Farley has publicly praised the Xiaomi SU7, describing how he has been driving the Chinese EV himself and calling attention to its blend of performance, software integration, and cost. Coverage of his remarks notes that the Chinese electronics maker launched the SU7 in Decem and managed to deliver a significant number of EVs to customers in its first year, a ramp-up that many legacy brands would struggle to match.

Farley’s comments are telling because they come from a leader who is trying to reposition a century-old automaker for an electric era. When a Detroit executive singles out a Chinese sedan he cannot even sell in his home market as a benchmark, it signals that the competitive set for performance EVs has shifted. Combined with the SU7 Ultra’s Nürburgring time and its appearance at European events like Goodwood, that recognition suggests that Xiaomi’s $28,000 Taycan rival is not just a Chinese phenomenon but a new reference point for the entire industry.

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