- Xiaomi officially launched its highly anticipated electric vehicle, the Speed Ultra 7 (SU7) sedan, emphasising a commitment to building a premium, competitively priced car comparable to Porsche and Tesla.
- The announcement comes amidst fierce competition in China’s electric vehicle market, which has seen over 200 major manufacturers vying for market share, resulting in a price war and shrinking profit margins.
- Xiaomi’s SU7, with a starting range of 700 kilometres and competitive pricing, targets premium consumers and represents the company’s strategic move into the automotive sector, leveraging its success in consumer electronics.
Xiaomi has officially introduced its highly anticipated electric vehicle – the Speed Ultra 7 (SU7) sedan. Lei Jun, the founder and CEO of the renowned Chinese smartphone brand, hinted at the launch earlier this week, expressing his desire for the company’s inaugural electric vehicle to be the “best-looking, easiest to drive, and smartest car,” priced below 500,000 yuan ($69,180).
Also read: Xiaomi enters EV market amid China auto industry challenges
Also read: Xiaomi CEO teases price on upcoming SU7 electric car
Xiaomi aims to create a ‘dream car’ comparable to Porsche and Tesla
“Xiaomi aims to create a ‘dream car’ comparable to Porsche and Tesla,” Lei Jun stated on Weibo Wednesday, emphasising the importance of learning from these industry leaders. Xiaomi disclosed on Thursday that SU7 model prices would span from 215,900 yuan ($29,874) to 299,900 yuan ($41,497).
The company’s significant foray into the automotive sector coincides with fierce competition within China’s industry, the largest electric vehicle market globally, driven by substantial state subsidies over the past decade, resulting in saturation.
Currently, there are over 200 prominent manufacturers producing pure electric vehicles (EVs) and plug-in hybrids, leading to a price war amid weakened consumer demand, with average profit margins plummeting to a mere 5% in 2023, as per official data.
Xiaomi’s SU7 has been showcased in showrooms across 29 mainland Chinese cities since Monday, as Lei indicated.
Xiaomi commanded a 13% share of smartphone sales in Q4 of 2023
Having gained prominence as a manufacturer of smartphones and consumer electronics, Xiaomi commanded a 13% share of both global and Chinese smartphone sales in Q4 of 2023, ranking fifth in China for the entire year.
In 2021, Xiaomi pledged a $10 billion investment over the next decade into a subsidiary dedicated to smart EVs.
Lei noted in his Weibo posts that the standard SU7 version boasts a starting range of 700 kilometres (435 miles), surpassing Tesla’s Model 3 long-range edition.
Xiaomi appears to target premium consumers, with the standard SU7 priced significantly lower than an imported Porsche Taycan, starting at 898,000 yuan ($124,248), and positioned competitively against Tesla’s Model S sedan, commencing at 698,900 yuan ($96,700).
In China, EVs are priced notably lower compared to the global market, exemplified by BYD’s most affordable model, the Seagull hatchback, priced at only 69,800 yuan ($9,658).
