Lei Jun, the co-founder of Chinese smartphone giant Xiaomi, recently announced the company’s entry into the electric vehicle market with the launch of its first EV, the SU7. The vehicle, priced at $30,000, will be joined by two other models, the SU7 Pro and SU7 Max, priced at $34,000 and $41,000 respectively. Lei Jun stated that Xiaomi spared no expense in making a quality car and plans to start delivering the vehicles by the end of April.
The pricing of Xiaomi’s electric vehicles is seen as relatively cheap compared to the features offered, according to analysts. Xiaomi may be sacrificing profits in hopes of generating greater demand by offering the EVs at lower prices. Based on estimates, Xiaomi could potentially deliver 80,000 vehicles by the end of the year and add at least $2.4 billion in new revenue by 2024. Despite entering a saturated market, Lei Jun remains committed to the EV market and hopes to eventually make a “dream car.”
The Chinese market for electric vehicles has become increasingly competitive, with one out of every three cars sold in the country being a new energy vehicle. The industry momentum has softened amid a weak economy and price wars initiated by Tesla and other rivals have led to squeezed margins. Despite social media suggestions for Xiaomi to price its vehicles below $14,000 to appeal to younger consumers, Lei Jun stated that the company’s cars may be seen as “a little bit expensive” to them. He acknowledged that Xiaomi isn’t making any money from the SU7 but remains committed to the EV market.
During the launch event, Lei Jun expressed surprise at Apple’s decision to end its efforts to build EVs. He praised companies that are committed to building such cars, referring to them as “heroes of the times.” The event saw the presence of fellow billionaires and competitors, including Li Xiang from Li Auto, William Li from Nio, and He Xiaopeng from Xpeng, who were thanked for their advice and support. The launch of Xiaomi’s electric vehicles marks the company’s next major venture following its success in the smartphone and internet services markets.
In a strategic move, Xiaomi is aiming to capture a significant share of the electric vehicle market with its competitively priced offerings. Despite the challenges posed by a saturated market and intense competition, Lei Jun remains optimistic about Xiaomi’s prospects in the EV industry. The company’s focus on quality and innovation, as well as its commitment to delivering affordable electric vehicles, could set it apart from its competitors. Throughout the launch event, Lei Jun reiterated his dedication to making Xiaomi a significant player in the electric vehicle market while also expressing gratitude to industry peers for their support and guidance.
As Xiaomi gears up to deliver its first electric vehicles to customers, the company’s foray into the EV market represents a major milestone for the tech giant. With a strong emphasis on quality, affordability, and innovation, Xiaomi’s electric vehicles are poised to make a mark in the competitive landscape of the electric vehicle industry. Despite the challenges ahead, Lei Jun’s vision for Xiaomi’s electric vehicles as “dream cars” reflects the company’s ambition and determination to succeed in this rapidly evolving market.
