Xiaomi's anticipated SU7 electric sedan has already secured more than 70,000 locked-in orders, announced Lei Jun, the founder of the Chinese tech giant, on Tuesday.
A Xiaomi SU7 electric car is displayed at a Xiaomi store in Beijing on March 26, 2024.
Xiaomi Aims for Over 100,000 SU7 Orders in 2024
Marketed as a "full-size high-performance eco-technology sedan" by Xiaomi, the SU7 boasts a starting price of $29,870, significantly lower than Tesla's Model 3. Despite its attractive price tag, the SU7 faces fierce competition in the crowded Chinese EV market.
Following the announcement of the car's starting price earlier this month, Xiaomi commenced accepting pre-orders for its SU7 electric sedan. Pre-orders reportedly totaled 88,898 on the first day. Locked-in orders are those for which buyers have made non-refundable deposits.
In a statement on Lei Jun's official WeChat account, the tech CEO expressed the company's intention to ship more than 100,000 units of the SU7. Previous reports suggest that buyers may have to wait over seven months to receive their Xiaomi EV.
Xiaomi's Focus on the Chinese Market for SU7 EV
In the same announcement, Lei Jun revealed that the company's initial electric cars will be "100% focused on the Chinese market until 2027." This decision comes amidst recent data from China indicating sustained growth in the electric vehicle sector, contrary to global trends.
According to data from the China Passenger Car Association, electric vehicle sales increased by 34% to 1.8 million in the first quarter. Bloomberg reports that China's EV market remains buoyant due to government support through policies and funding, as well as a steady influx of middle-income buyers attracted by China's more affordable EVs.
Xiaomi Cautious about Entering the EV Market
However, Xiaomi, primarily known for its smartphones and home technologies, approaches its first venture into electric vehicles cautiously. Reuters reports that the company anticipates losses on the SU7, noting that most of its suppliers also serve Mercedes-Benz, BMW, and Audi.
Lei Jun has previously stated that given the high costs of suppliers and parts, the gross profit margin is not expected to be very high.
"I estimate that the gross profit margin will be around 5-10%," he said, indicating that Xiaomi is exploring options to increase production capacity and obtain additional cost support from suppliers.
Xiaomi plans to invest an additional 11-12 billion yuan this year in new ventures such as the automotive division and the operating mobile system for its phones.
In Other News
BYD unveiled its Shark electric pickup truck on Monday, April 22. The company announced that the electric vehicle will feature a plug-in hybrid Dual Mode Off-Road (DMO) system for off-roading.
Although the Beijing Autoshow commenced on Thursday, the Chinese EV manufacturer had already revealed the BYD Shark on Weibo days earlier. However, Reuters reports that the firm did not provide pricing options.
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