- Xiaomi, the third-largest smartphone manufacturer, unveils its first electric vehicle, aiming to disrupt the automotive industry with a price under 500,000 yuan.
- The company’s ambitious EV project, backed by a $10 billion investment, reflects CEO Lei Jun’s vision for a comprehensive smart ecosystem.
- Industry analysts debate Xiaomi’s potential impact on the EV market, with predictions ranging from seamless integration with existing Xiaomi products to competition with leading brands like XPeng and Tesla.
Xiaomi’s foray into Electric Vehicles
On Thursday, China’s Xiaomi is slated to unveil its highly awaited electric vehicle (EV), disclose its pricing, and commence order intake, signifying the electronics firm’s foray into the automotive realm.
Also read: Xiaomi CEO teases price on upcoming SU7 electric car
Luxury comparisons and pricing strategy
Thus far, the world’s third largest vendor of smartphones has indicated that the pricing of its automobile will be set below the 500,000 yuan ($69,170.64) mark. The models showcased in more than 70 stores throughout China on Monday have invoked comparisons to the sports car models of Porsche’s Taycan and Panamera.
Lei Jun’s commitment and market expectations
Also read: Smartphone maker Xiaomi to deliver first electric vehicle in China this month
The launch represents the fulfilment of an aspiration held by Xiaomi’s Chief Executive Officer and founder, Lei Jun, who proclaimed the company’s venture into the electric vehicle (EV) market in 2021. He has vowed to inject $10 billion into Xiaomi’s automotive division, characterising it as the ultimate significant entrepreneurial endeavour he intends to pursue.
In the period subsequent to that announcement, the project’s developments have garnered intense scrutiny in China, ranging from the establishment of a manufacturing alliance with the state-owned BAIC Group to the unveiling of the SU7 sedan, otherwise known as Speed Ultra 7, in December.
There exists a divergence of opinion among analysts regarding the prospective success of Xiaomi’s automotive initiative. Some argue that it represents a logical expansion for the brand, which is already a familiar presence in many Chinese households through its range of rice cookers, air purifiers, and other electronic devices, thereby affording Xiaomi the opportunity to provide a more integrated digital experience and to accumulate additional data.
Analysts at Bernstein have posited that Xiaomi will face the most immediate competition from firms such as XPeng and Tesla in the realm of electric vehicles.
