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 shift in the company’s automotive strategy. This approval paves the way for Xiaomi to introduce its first range-extended model, the Kunlun N3 SUVtargeting the family-oriented SUV segment dominated by Li Auto and Huawei’s Aito.
The Kunlun N3, measuring over 5.3 meters in length, is set to compete directly with Li Auto’s popular L9 model. This move signifies Xiaomi’s strategic pivot from pure electric vehicles (BEVs) to extended-range electric vehicles (EREVs)which combine a battery pack with a small internal combustion engine (ICE) generator. This hybrid approach has gained significant traction in China, particularly for large family SUVs where range anxiety remains a concern.
Xiaomi’s strategic shift to extended-range vehicles
Until now, Xiaomi has focused solely on BEVs, including the SU7 sedan and the YU7 SUV. The SU7 has already made waves by outselling the Tesla Model 3 in China earlier this year. However, the company recognizes the potential of the EREV market, which offers a compelling solution for consumers seeking longer range and flexibility.
The MIIT filing, published on June 10, 2026, includes a public comment period running through June 17 before final approval. According to Chinese media outlet 21jingjithe Kunlun N3 will likely launch under a new sub-brand called Skynomadtargeting the family-oriented SUV segment that Xiaomi’s sporty SU7 and YU7 models do not address.
Key specifications of the Kunlun N3
The Kunlun N3 is expected to feature the following specifications:
- LengthOver 5.3 meters (full-size SUV territory)
- Battery70+ kWh pack
- Pure electric range400–500 km (CLTC)
- PowertrainRange-extended (small ICE generator + electric drive)
- Battery suppliersSunwoda (60% of supply) and CALB (40%)
- LaunchSecond half of 2026
Competing with Li Auto and Huawei’s Aito
Xiaomi’s Kunlun N3 is poised to compete directly with established players in the EREV market, notably Li Auto and Huawei-backed Aito. In 2026, these two brands dominated China’s extended-range SUV market, capturing seven of the top 10 best-selling EREV SUVs.
Li Auto recently launched its updated L9 flagship in May 2026, featuring a 72.7 kWh battery420 km of pure electric range, and a combined range of 1,650 kmpriced from 459,800 yuan ($67,600). However, the L9 has faced challenges, with deliveries plummeting 74% year-over-year in the first four months of 2026, totaling just 4,131 units.
Huawei-backed Aito’s M9 has remained a top seller, securing 50,000 pre-orders before its May launch. The M9 has been the top-selling luxury car in China above 500,000 yuan for two consecutive years, with cumulative deliveries exceeding 280,000 units.
With a 70+ kWh battery offering 400–500 km of electric range, the Kunlun N3’s specifications are competitive with both the L9 and M9. Xiaomi aims to position the Kunlun N3 below the M9 in price while competing directly with the L9 on size and capability.
Xiaomi’s ambitious 2026 expansion plan
The introduction of the Kunlun N3 is part of Xiaomi’s broader product blitz for 2026. The company plans to launch four new models this year, including a refreshed SU7 with 902 km range, an SU7 Executive Edition, and two extended-range SUVs (five-seat and seven-seat variants).
Xiaomi has set an ambitious delivery target of 550,000 units for 2026, representing a 34% increase from the roughly 410,000 units delivered in 2026. However, the company’s progress so far suggests that achieving this target will be challenging. January through May deliveries totaled 150,317 unitsup just 13.5% year-over-year. In May alone, Xiaomi delivered 32,759 vehiclesa 17% year-over-year increase but a 10.7% decline from April.
Introducing two entirely new EREV models in the second half of the year will be a critical step in meeting Xiaomi’s annual target. The company’s ability to ramp up production and deliver on its promises will be closely watched by industry observers.
