Xiaomi officially launched its new electric car, the Speed Ultra 7 (SU7) sedan, in Beijing. Lei Jun, the founder and CEO of Xiaomi, had previously expressed his desire for the company’s first electric vehicle to be the best-looking, easiest to drive, and smartest car priced below 500,000 yuan ($69,180). He emphasized that Xiaomi aims to create a “dream car” comparable to Porsche and Tesla by learning from the best car manufacturers in the world. The SU7 models were priced between 215,900 yuan ($29,874) and 299,900 yuan ($41,497) at the launch.
The EV market in China is experiencing intense competition, with over 200 major manufacturers producing pure EVs and plug-in hybrids. A price war erupted last year as companies tried to increase sales in the face of weak consumer demand, leading to an average profit margin of just 5% in 2023. BYD, the largest player in the industry, reported its slowest quarterly profit growth in two years, indicating a loss of sales momentum. Xiaomi’s entry into the market with the SU7 sedan reflects the company’s ambitions to compete in the rapidly evolving industry.
Xiaomi’s SU7 has been showcased in showrooms across mainland China, targeting premium consumers with features such as a starting range of 700 kilometers (435 miles) for the standard version. This range surpasses the long-range version of Tesla’s Model 3, positioning Xiaomi as a competitive player in the EV market. The standard SU7 is priced significantly lower compared to imported luxury cars like the Porsche Taycan and Tesla’s Model S, making it an attractive option for consumers in China. BYD’s affordable Seagull hatchback, priced at 69,800 yuan ($9,658), reflects the lower pricing of EVs in the Chinese market.
In 2021, Xiaomi announced a $10 billion investment over the next decade into a subsidiary focused on smart EVs, signaling its long-term commitment to the electric vehicle sector. The company’s strategic focus on creating innovative and high-quality electric vehicles aligns with its reputation as a leading manufacturer of smartphones and consumer electronics. By offering competitive pricing, advanced features, and a stylish design, Xiaomi aims to capture market share in China’s increasingly crowded EV market. With its SU7 sedan, Xiaomi seeks to establish itself as a key player in the industry and compete with established brands in the premium electric vehicle segment.
Overall, Xiaomi’s foray into the electric vehicle market with the launch of the SU7 sedan represents a significant step in the company’s expansion beyond smartphones and consumer electronics. By targeting premium consumers, offering competitive pricing, and showcasing advanced features, Xiaomi aims to establish itself as a formidable player in the rapidly growing EV market in China. With a focus on innovation, quality, and sustainability, Xiaomi is positioned to capitalize on the evolving trends in the automotive industry and contribute to the transition towards electric mobility in the country.
