Xiaomi Unveils Sporty Electric Car to Challenge Tesla in China’s Competitive EV Market, Chinese smartphone giant Xiaomi made a bold entry into the electric vehicle (EV) market by launching a sleek electric car on Thursday. The new offering, inspired by design elements from Porsche, aims to compete directly with Tesla’s Model 3 while highlighting the fierce competition among emerging players in China’s rapidly expanding EV sector.
During a two-hour event attended by industry leaders, Xiaomi’s CEO and founder, Lei Jun, introduced the standard SU7 EV model priced at 215,900 yuan ($29,872.02). Additionally, the Pro and Max versions were revealed, priced at 245,900 yuan and 299,900 yuan, respectively.
Lei Jun emphasized the competitive pricing of the SU7, noting that it is 30,000 yuan cheaper than Tesla’s Model 3, which starts at 245,900 yuan in China. He also highlighted the advanced capabilities of the SU7, drawing comparisons with Porsche’s Taycan and Panamera models. For instance, the SU7 boasts a minimum range of 700 km, surpassing the Model 3’s 567 km range.
The launch of the SU7 represents Xiaomi’s strategic move into the automotive industry, following Lei Jun’s announcement in 2021 about the company’s ambitious plans in the EV sector. Xiaomi’s partnership with state-owned automaker BAIC Group facilitated the manufacturing of the SU7 sedan, first unveiled in December.
The response to Xiaomi’s entry into the EV market was immediate, with the company receiving 50,000 orders for the SU7 within the first 27 minutes of opening orders. Deliveries for the Standard and Max models are set to begin in late April, followed by the Pro models by the end of May.
Lei Jun acknowledged the challenges of transitioning from electronics to car manufacturing, noting the complexities involved. Despite these challenges, Xiaomi remains committed to its automotive venture, with plans to make the SU7 available in 211 stores across 39 Chinese cities by the end of the year.
However, analysts have expressed mixed views on Xiaomi’s prospects in the EV market. While some view it as a natural extension for the tech giant, others question whether Chinese consumers will embrace Xiaomi as a premium EV brand, given its reputation for affordable consumer electronics.
The launch of the SU7 coincides with a challenging period in China’s auto industry, with established players dominating market share. Analysts caution that Xiaomi’s success hinges on its ability to scale up sales quickly to avoid becoming a financial burden for the company.
Despite these challenges, Xiaomi’s diversified revenue streams and expertise in smartphone technology are seen as advantages. The SU7 integrates Xiaomi’s proprietary Hyper OS as its operating system, providing seamless connectivity with other Xiaomi devices, including smartphones.
Xiaomi’s foray into the EV market represents a significant step in China’s evolving automotive landscape, showcasing the intense competition and innovation driving the country’s electric vehicle revolution.
