Xiaomi Industry Investment Department partner Pan Jiutang disclosed via social media that during the initial planning phase of the Xiaomi SU7/YU7 project, there were differing strategic opinions within the company. One faction advocated for first developing mid-to-large-sized SUVs and adopting a Toyota-like approach, focusing on spacious interiors and cost-effectiveness to create a differentiated competitive edge. This group argued that producing luxury sports sedans or SUVs demands excessively high brand prestige, technical expertise, and R&D investment, citing how multiple competitors have struggled for years to challenge Tesla's Model 3 and Model Y. The opposing viewpoint held that since Xiaomi started later than others, it should commit fully to intensive resource allocation and tackle the most challenging segment head-on. Ultimately, the decision was made to confront TBBA directly in the market.