Lei Jun, the cofounder of Xiaomi, announced the launch of the company’s first electric vehicle, the SU7, at a starting price of 215,900 yuan ($30,000). The tech tycoon unveiled two other models, the SU7 Pro priced at $34,000 and the SU7 Max at $41,000. Xiaomi plans to deliver the vehicles by the end of April and is aiming to generate greater demand by offering the EVs at competitive prices, potentially delivering 80,000 vehicles by the end of the year.
The pricing strategy of Xiaomi’s EVs is seen as relatively cheap considering the features offered, with analyst Wang Hanyang estimating that Xiaomi could add at least $2.4 billion in new revenue by 2024 based on the starting price of $30,000 for the SU7. Despite entering the market at a difficult time with saturation and aggressive pricing competition from companies like Tesla, Lei Jun expressed his commitment to making a “dream car” and acknowledged that Xiaomi isn’t currently making a profit from the SU7.
Lei Jun also commented on Apple’s decision to cancel its EV project and praised companies committed to building electric cars as “heroes of the times.” During the launch event, Lei Jun invited fellow billionaires and competitors including Li Auto’s Li Xiang, Nio’s William Li, and Xpeng’s He Xiaopeng, thanking them for their advice and support. This event echoed Xiaomi’s previous ceremony in 2023 when the SU7 was first unveiled.
The SU7 is priced to cater to a wide range of consumers, with the SU7 Pro offering an extended driving range of 830 kilometers and the SU7 Max positioned as a high-performance model rivaling Porsche’s Taycan. Xiaomi’s venture into the EV market marks Lei Jun’s “last major startup project” and aims to establish a presence in an increasingly competitive sector. Despite challenges in the market, Xiaomi’s entry into the EV market represents a significant milestone for the company.
Xiaomi’s foray into electric vehicles represents a strategic move to diversify revenue sources beyond smartphones and internet services, with the potential to significantly boost the company’s revenues. As the Chinese market for EVs becomes more saturated and competitive, Xiaomi’s pricing strategy and commitment to innovation will be key factors in determining the success of its EV venture. Lei Jun’s vision to create a “dream car” and compete with established players in the EV market underscores Xiaomi’s ambition and determination to succeed in this new venture.
