Xiaomi Auto Launches Standalone Sub-brand "Xuntian" Targeting Range-Extended Family SUV Market

Xiaomi Auto has established an independent sub-brand named “Xuntian” (SkyNomad), with its first model being a full-size extended-range SUV internally codenamed “Kunlun N3.” Scheduled for launch in the second half of 2026, the vehicle will no longer carry Xiaomi’s main brand logo. Measuring over 5.3 meters in length with a wheelbase of approximately 3.1 meters, it will be powered by a 1.5T range extender, offering an estimated pure-electric range of 400–500 km and a combined range of around 1,500 km. Positioned to compete directly with the Li Auto L9 and Aito M9, the Kunlun N3 targets the premium family SUV segment. According to business registration records, Xiaomi Technology filed for the Chinese trademark “Xuntian” in April 2023 and submitted the English trademark “SKYNOMAD” in November 2024. Between 2025 and 2026, the company intensively registered nearly 140 related trademarks. Following the Kunlun N3, the Xuntian brand plans to roll out additional extended-range SUVs—Kunlun 10, 20, and 30—as well as a roof-raising outdoor camper van codenamed “Man Island,” covering both daily commuting and outdoor camping use cases. While Xiaomi’s main brand currently focuses on high-performance battery electric vehicles like the SU7 and YU7 aimed at younger consumers, Xuntian is explicitly targeting family users with an emphasis on long-distance travel and outdoor capabilities. Industry analysts expect Xuntian’s core models to be priced between RMB 250,000 and RMB 350,000—a price band that remains one of the few still growing in China’s new energy vehicle (NEV) market. In Q1 2026, passenger vehicle insurance registrations in the RMB 250,000–300,000 segment rose by 7.1% year-over-year, while the overall market declined by 17.3%. Domestic extended-range vehicle sales surpassed 1.2 million units in 2025, though growth slowed sharply from 71% in 2024 to just 3%, reflecting intensifying competition. Beyond NEV startups, joint-venture brands—including SAIC Volkswagen, Dongfeng Nissan, and GAC Toyota—are also accelerating their entry into the RMB 200,000–350,000 extended-range segment. From January to April 2026, Xiaomi Auto delivered 101,000 vehicles, an increase of over 11% year-over-year. Its current sales network primarily consists of “Experience Centers + Delivery Centers.” If Xuntian leverages Xiaomi’s existing “Mi Home” retail system, it may face user experience conflicts due to differing customer demographics; alternatively, building a separate channel would significantly raise operational costs. Moreover, Xiaomi’s roughly 200 authorized service centers are currently optimized for BEVs, while extended-range models—featuring internal combustion engines and fuel systems—demand more advanced after-sales maintenance capabilities. Key enablers of Xiaomi’s dual-brand strategy include: proven hit-making capability (the SU7 garnered nearly 90,000 firm orders within 24 hours of launch), strong brand and ecosystem synergy (seamless integration across smartphones, vehicles, and smart homes), annual R&D investment exceeding RMB 30 billion, and organizational and channel efficiencies honed in the consumer electronics sector. However, the automotive industry demands far higher standards in product reliability, quality control, and service systems than consumer electronics. The large SUV market is already oversupplied, with annual demand estimated at only 300,000–500,000 units against potential supply exceeding one million—making competition fierce. Xuntian must rapidly establish a solid sales base shortly after launch; otherwise, it risks being eliminated. Xiaomi Auto has set a full-year 2026 delivery target of 550,000 vehicles, requiring average monthly deliveries of 50,000 units for the remainder of the year—approaching its historical peak. Once Phase III of its Yizhuang factory comes online, annual production capacity could reach one million units, though challenges remain in ramping up output, ensuring supply chain stability, and maintaining quality control. Regarding overseas expansion, Xiaomi Auto has not yet launched large-scale exports, with its international strategy expected to begin around 2027.