Tue, April 16, 2024

Xiaomi’s SU7 Electric Surge: 50K Orders in 27 Mins

xiaomi

Quick Look:

  • Xiaomi unveils its sporty electric vehicle, the SU7, with a price range of $30,000 to $40,000.
  • The EV giant receives 50,000 orders within 27 minutes of sales commencement.
  • Xiaomi’s SU7 aims to revolutionize the EV market and the “Human x Car x Home” ecosystem.

Xiaomi has launched the sporty SU7, a four-door electric vehicle. It is a significant milestone in the company’s journey towards becoming a major player in the automotive industry. This launch highlights Xiaomi’s innovative prowess. Besides, it plays as the company’s strategic entry into the world’s largest market for electric vehicles, China. The price range of the SU7 is between 215,900 yuan ($30,000) to 299,900 yuan ($40,000). The cost range reflects Xiaomi’s commitment to making electric mobility accessible to a broader audience. The market’s enthusiastic reception is evident. The Chinese tech giant received an impressive 50,000 orders within 27 minutes after sales opened.

China’s EV Leader Targets Top 5 Spot

As the global leader in electric vehicle consumption, China presents a fertile ground for Xiaomi’s ambitious endeavours. The combined share of EVs and hybrids in China’s auto sales seems to surge from 42% to 45% in 2024, up from 36% in 2023. The company’s strategic timing could not be more suitable. Its vision extends far beyond mere market participation. Xiaomi aspires to rank among the top five automakers within the next 15 to 20 years, a testament to its long-term commitment to the automotive industry.

SU7 vs Tesla: Xiaomi’s Winning Strategy

The SU7 is not just an electric vehicle but a direct challenger to the Tesla Model 3 in China. Xiaomi’s founder, Lei Jun, confidently claims that the SU7 surpasses the Tesla in most categories, although he humbly acknowledges a slight shortfall compared to the Porsche Taycan. At the heart of Xiaomi’s strategy is creating a comprehensive “Human x Car x Home” ecosystem, seamlessly connecting the SU7 with Xiaomi’s smartphones and home appliances. This innovative approach not only enhances the user experience but also propels Xiaomi into a unique position in the market.

Xiaomi’s foresight is evident despite losing money on the basic model due to its competitive pricing strategy. The company expects to sell 60,000 vehicles in its first year. The company expects initial losses attributed to high marketing and promotion costs, underscoring its commitment to long-term growth and market penetration.

Xiaomi’s EV Path: Challenges & Global Ambitions

The crowded Chinese EV market has challenges, including stiff competition and potential political headwinds, particularly for Chinese automakers looking to expand abroad. The scrutiny of Chinese subsidies by the European Union and concerns over data security of Chinese-made connected cars in the U.S. highlights the geopolitical hurdles Xiaomi might face. However, the company’s resilience is notable; having been briefly placed on a U.S. Defense Department blacklist in 2021 over alleged links to China’s military, Xiaomi was subsequently removed from the list after suing the U.S. government.

SU7 Specs: Outranges Tesla with 700 km Minimum

The SU7 is available in Standard, Pro, and Max models, with the standard model priced at 215,900 yuan ($29,872.02). It boasts a minimum range of 700 km, outperforming the Tesla Model 3’s 567km range. Lei Jun’s commitment to investing $10 billion in Xiaomi’s auto business underscores the magnitude of his vision for the automotive sector, which he regards as his last major entrepreneurship project. With deliveries for the Standard and Max models slated to start in late April and the Pro models by the end of May, the SU7 is set to make a significant impact. The availability of the SU7 in 211 stores across 39 Chinese cities by year’s end will undoubtedly bolster Xiaomi’s presence in the electric vehicle market.

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