Xiaomi has officially rolled out its YU7 high-performance, electric SUV, with a shockingly competitive price of just RMB 253,500 ( P1.989 million before taxes ). The Chinese tech company then saw over 300,000 reservations within hours after the prices were announced.

Chinese EV and smartphone maker Xiaomi on Thursday priced its new electric YU7 SUV from 253,500 yuan ($35,364), almost 4% below Tesla's Model Y, stepping up the challenge to the U.S. firm in the world's largest auto market.

Tesla Model Y is priced at 263,500 yuan in China, and with the recent launch of Xiaomi YU7, the American EV maker is likely to witness a dip in its market share.