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Xiaomi's ( XIACF ) YU7 SUV to compete with Tesla's Model Y in China

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YU7 features longer range than Tesla's Model Y

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Xiaomi ( XIACF ) faces challenges after SU7 crash, false advertising

complaints

(Adds quotes, details)

By Qiaoyi Li, Che Pan and Brenda Goh

BEIJING, May 22 (Reuters) - Xiaomi ( XIACF ) will start

selling its YU7 electric vehicle, in July, founder and CEO Lei

Jun said on Thursday, disclosing the launch date of an SUV

analysts say will be the strongest rival in China to Tesla's

best-selling Model Y.

The world's third-largest smartphone maker, which also makes

cars, announced specifications for its second EV model alongside

launches of smartphones and tablets that use its self-developed

chips.

Xiaomi ( XIACF ) did not disclose prices or start taking pre-orders

for the YU7.

In his presentation of the YU7, Lei made comparisons to the

Tesla's Model Y. The SU7, for instance, has a driving range of

up to up to 835 kilometres (519 miles) per charge, versus the

redesigned Model Y that was launched in January with a range of

up to 719 kilometres.

"The Model Y is priced from 263,500 yuan ($36,574) and these

(YU7) configurations should make the car 60,000-70,000 yuan more

expensive," Lei said. "But we'll talk about the price in July."

Xiaomi ( XIACF ) entered the auto sector last year with its sporty EV

SU7, which drew styling cues from Porsche and was priced below

Tesla's Model 3. Since December, the SU7 has outsold Tesla's

Model 3 in China on a monthly basis.

Xiaomi's ( XIACF ) SU7 deliveries have exceeded 258,000 units since

its launch, Lei said on Thursday.

But the company's new EV orders have fallen following a

fatal highway crash at the end of March involving an SU7 in

driving-assistance mode. Its problems have been compounded by

customer complaints of false advertising. Xiaomi ( XIACF ) apologised for

"not clear enough" marketing.

Besides the YU7, Lei also announced a second new

self-developed chip called Xring T1. The Xring O1 mobile chip,

which the company announced earlier this month, matches Apple's ( AAPL )

best processor A18 on performance, he said.

($1 = 7.2036 Chinese yuan renminbi)