Chinese smartphone brand Xiaomi has entered the electric vehicle (EV) market with its SU7 sedan, quickly garnering over 70,000 locked-in orders in the first month after its launch. The CEO Lei Jun announced that demand for the SU7 exceeded expectations, with plans to sell 100,000 units this year. The success of Xiaomi’s first EV has sparked a price war among China’s EV players, leading to Tesla and Li Auto reducing prices on their vehicles just days after the SU7’s debut.
Xiaomi’s SU7 sedan comes in three variants, with the standard model priced at 215,900 yuan, the high-end SU7 Pro at 245,900 yuan, and the most powerful SU7 Max at 299,900 yuan. Despite selling at a loss based on current prices, Xiaomi aims to compete with established players like Tesla and Geely Automobile-backed Zeekr. The company’s entry into the EV market has intensified the ongoing price rivalry as the competition heats up.
China’s new energy vehicle market saw a total of 1.76 million units sold in the first quarter of this year, marking a 31% decrease from the previous quarter but a 34% increase from the same period last year. Xiaomi’s success in securing orders for the SU7 sedan has positively impacted its stock performance, with shares rising 2.65% in Hong Kong. The company began delivering its founder version of the SU7 in early April and plans to start delivering the standard and high-end versions soon.
Xiaomi’s focus remains on the SU7 sedan, with the company bringing forward deliveries by 12 days to meet demand. There are no plans to develop off-road vehicles, with the primary focus being on the SU7 series. Despite the intense competition in the Chinese EV market, Xiaomi is confident in the popularity of its electric sedan and aims to establish a strong presence in this rapidly growing industry. The success of the SU7 series reflects Xiaomi’s ability to leverage its brand strength and innovate in new markets.
