Chinese technological behemoth Xiaomi heralds a significant stride into the electric vehicle (EV) arena, announcing the imminent delivery commencement of its premier EV model. This venture represents Xiaomi’s bold foray from its foundational smartphone industry stronghold into the automotive domain’s competitive landscape.
The revelation of this electric vehicle’s pricing is eagerly anticipated on March 28. Ranking as China’s fifth-largest smartphone manufacturer, Xiaomi possesses a robust retail infrastructure, with 59 outlets across 29 cities nationwide, poised for order acceptance for this pioneering initiative.
This development unfolds as an escalating price war engulfs leading automotive firms within China, the globe’s paramount car market. Industry stalwarts like BYD and Tesla recalibrate strategies to sustain competitiveness, with pricing adjustments emerging as a prevalent tactic to captivate consumers.
At the nucleus of Xiaomi’s automotive expedition stands the Speed Ultra 7 (SU7), a model showcased last year by Xiaomi CEO, Lei Jun. Lei envisions Xiaomi ascending to the echelons of the top five car manufacturers globally. Accompanying this announcement, Xiaomi pledges an investment of $10 billion in its vehicle division over the next decade.
Lei Jun accentuated the SU7’s cutting-edge ‘super electric motor’ technology, boasting acceleration capabilities surpassing certain Tesla and Porsche EV models, earmarking the SU7 as a formidable contender in the electric vehicle sphere.
A distinctive appeal for the SU7 encompasses its unified operating system, mirroring the platform of Xiaomi’s smartphones and other devices. This strategy seeks to capitalize on the brand’s existing customer base, offering a cohesive user experience across Xiaomi’s product spectrum.
Xiaomi’s foray into the EV market is distinguished, joining a select cadre of newcomers accorded approval by Chinese authorities. This regulatory endorsement is pivotal amidst endeavours to temper the burgeoning influx of new competitors within the electric vehicle sector.
Production of the SU7 will transpire under the auspices of a BAIC Group subsidiary, within a Beijing facility equipped for an annual output of up to 200,000 vehicles.
Xiaomi’s automobile venture’s inception coincides with heightened rivalry within China’s EV market, characterized by aggressive pricing strategies from industry titans. Tesla, steered by Elon Musk, has notably diminished prices in China, a strategy paralleled by local adversary BYD to preserve market presence.
Following the announcement, Xiaomi’s shares witnessed a surge, ascending over 10% in Hong Kong, mirroring investor confidence in the company’s novel trajectory. This endeavor not only diversifies Xiaomi’s portfolio but also enriches the dynamic fabric of China’s electric vehicle market with promising technological innovations and competitive pricing strategies.
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