Chinese smartphone company Xiaomi has announced plans to enter the electric car market with its new SU7 sedan. Priced at 215,900 yuan ($30,408), Xiaomi’s car significantly undercuts competitors such as Tesla’s Model 3, which starts at 245,900 yuan in China. Despite selling the SU7 at a loss, Xiaomi CEO Lei Jun claims the car surpasses the Model 3 on more than 90% of specifications. With a minimum driving range of 700 kilometers, the SU7 received over 20,000 orders in just seven minutes.
Xiaomi’s entry into the electric car market comes at a time of intense competition in China, with companies launching new models and lowering prices to attract customers. Other competitors in the market include Huawei, which has partnered with traditional automakers to launch the Aito brand, and BYD, Nio, Xpeng, and Zeekr, all offering electric sedans at varying price points. Sales of new energy vehicles have surged in China, accounting for about one-third of new passenger cars sold.
At the SU7 launch event, Lei showcased a range of accessories for the car, including an in-car refrigerator, front-window shade, and smartphone holder. The car supports Apple’s Car Play and can integrate with the iPad, as well as offering driver-assist technology for highways and cities. While Tesla’s Autopilot is available in China, the company’s “Full Self Driving” feature for city streets has yet to be released in the country.
Xiaomi’s SU7 is part of the company’s broader strategy to build an ecosystem of devices connected to its new HyperOS operating system. While Xiaomi is known for offering affordable products, the company has been pursuing a premiumization strategy since 2020. With about 20 million users in the higher price segment, Xiaomi aims to attract consumers who may be interested in purchasing the SU7. The company plans to first sell the car in China, with potential overseas launches at least two to three years away.
The SU7 unveiling at Mobile World Congress in Barcelona follows previous reveals of the car’s exterior and technology in Beijing. Despite Lei’s ambitions to compete with more premium brands like Porsche, Xiaomi acknowledges that the SU7 still has a way to go before reaching that level. The company also plans to release a “Max” version of the SU7, priced at 299,900 yuan, aimed at competing with Porsche’s Taycan. With a focus on technology and connectivity, Xiaomi’s foray into the electric car market represents a significant step in expanding the company’s product offerings beyond smartphones and consumer electronics.
