Chinese tech giant Xiaomi is set to enter the electric vehicle (EV) market with its upcoming release of the Xiaomi SU7. CEO Lei Jun confirmed that the sedan aims to be competitively priced, targeting a range below 500,000 yuan ($69,328).
In a Weibo post, Lei Jun expressed Xiaomi's ambition for the SU7 to stand out as the "best looking, best driving, and most intelligent sedan" in its price segment.
The company plans to officially launch the SU7 this week, with orders opening on Thursday. Prospective buyers will also have the opportunity for test drives starting the same day. According to another Weibo post by Lei, the electric vehicle is exhibited at Xiaomi stores in 29 cities across China.
Xiaomi Enters the EV Market with SU7
Xiaomi's entry into the EV market places it in direct competition with industry titan Tesla and other domestic players such as BYD, Nio, Xpeng, and Li Auto. Notably, Xiaomi's pricing strategy positions the SU7 competitively against Tesla's Model S, which starts at 698,900 yuan, and Model 3, starting at 245,900 yuan.
The SU7 offers impressive driving ranges, with one version boasting up to 668km (415 miles) on a single charge, surpassing Tesla's Model S range of up to 650km. Another version offers an even greater range of up to 800km.
CNBC tells us that Xiaomi's foray into EVs comes amid a shifting landscape in the Chinese market, marked by stiff competition and price wars sparked by Tesla. Despite challenges, Xiaomi remains committed to its vision, with Lei Jun affirming his dedication to the venture.
In its efforts to diversify, Xiaomi has pledged substantial investment, committing $10 billion over a decade to its automotive endeavors. Production of Xiaomi's cars is handled by a unit of state-owned automaker BAIC Group, with an annual capacity of 200,000 vehicles, further signaling the company's serious entry into the EV sector.
Xiaomi's move into electric vehicles represents a significant step beyond its traditional focus on smartphones and consumer electronics.
"Three years ago, I announced that Xiaomi was going to enter the EV market. This is my final new venture - I am putting my reputation on the line to fight for a vision I deeply believed in," the Xiaomi CEO said in a post on X earlier today.
(Photo : PAU BARRENA/AFP via Getty Images)
Smart car model SU7 Max by Xiaomi is displayed at the Chinese company's stand during the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 26, 2024. The world's biggest mobile phone fair throws open its doors in Barcelona with the sector looking to artificial intelligence to try and reverse declining sales.
In Other News
Tesla has cut electric car production at its Chinese plant due to weak new-energy vehicle sales and stronger competition in the world's largest auto market.
This month, the company directed Shanghai workers to construct the Model Y SUV and Model 3 sedan five days per week rather than six and a half.
Despite a 17% increase in passenger car sales in China in the first two months of 2024 and a 37.5% increase in new-energy vehicle sales, Tesla's shipments fell year on year, according to Bloomberg.
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