Xiaomi, the prominent Chinese smartphone manufacturer, is venturing into the electric vehicle (EV) market with the launch of its inaugural electric car, the Speed Ultra 7 (SU7), which will be available for orders starting this Thursday. Priced at below 500,000 yuan ($69,186; £54,836), as disclosed by its CEO Lei Jun, this move positions Xiaomi to directly compete with industry leaders such as Tesla and BYD.
Amidst a global slowdown in sales growth, Xiaomi aims to leverage its existing customer base by integrating the SU7 with its ecosystem of devices, including phones and laptops, through a shared operating system. With Xiaomi already commanding a significant 12% market share in the global smartphone industry, according to Counterpoint research, the company seeks to replicate its success in the EV sector.
The SU7, which has been teased by Xiaomi since last year, has been likened to high-performance models like Porsche’s Taycan and Panamera. Manufactured by a subsidiary of state-owned carmaker BAIC Group in Beijing, with an annual production capacity of up to 200,000 vehicles, Xiaomi anticipates demonstrating consumer demand for smart EVs with its entry into the market, as noted by Bill Russo of Automobility.
Xiaomi’s foray into the automotive industry stands in contrast to Apple’s recent abandonment of its EV plans, signaling the former’s confidence in the Chinese EV market’s potential. Xiaomi has committed to investing $10 billion (£7.9 billion) in its vehicles business over the next decade, buoyed by the robust ecosystem and infrastructure supporting EV manufacturing and adoption in China, according to Abhishek Murali from Rystad Energy.
In the midst of escalating competition and a price war within China’s EV market, Xiaomi’s entry presents a notable addition to the landscape, particularly against the backdrop of record profits from incumbents like BYD and adjustments in delivery forecasts from companies like Nio. Tesla’s impending announcement of its first quarter delivery figures for 2024 awaits, amidst global trade disputes over subsidies and investigations into alleged unfair practices within the electric car industry.