Xiaomi officially launched its highly anticipated electric car, the Speed Ultra 7 (SU7) sedan in Beijing, with CEO Lei Jun aiming for the vehicle to be the best-looking, easiest to drive, and smartest car priced below 500,000 yuan ($69,180). Jun expressed a desire for Xiaomi’s first electric vehicle to rival the likes of Porsche and Tesla, and emphasized the importance of learning from the best car manufacturers in the world. The SU7 models are priced between 215,900 yuan ($29,874) and 299,900 yuan ($41,497), reflecting Xiaomi’s entry into the competitive Chinese automotive market, which has seen over 200 major manufacturers producing EVs and hybrids.
Despite entering a crowded market with fierce competition, Xiaomi is undeterred in its ambition to capture a share of the growing electric vehicle industry in China. This move comes at a time when profit margins are dwindling due to a price war sparked by weaker consumer demand and increased production costs. Xiaomi’s SU7 sedan has been showcased in 29 cities across mainland China, highlighting the company’s commitment to carving out a place in the electric automotive sector. With a track record in smartphones and consumer electronics, Xiaomi is leveraging its brand recognition to penetrate the EV market, where it accounted for significant market share in smartphone sales in 2023.
In 2021, Xiaomi announced a $10 billion investment over the next decade into a subsidiary focusing on smart EVs, setting the stage for the development and expansion of its electric vehicle division. The SU7 sedan boasts a starting range of 700 kilometers (435 miles), surpassing the long-range version of Tesla’s Model 3, positioning Xiaomi as a competitor in the premium electric vehicle segment. Targeting premium consumers, Xiaomi’s pricing strategy for the SU7 places it in direct competition with established brands like Porsche and Tesla, offering a more affordable option for consumers in the Chinese market, where EV prices are considerably lower compared to the global market.
With a strong focus on design, performance, and technology, Xiaomi’s SU7 represents the company’s vision for a flagship electric vehicle that combines style, ease of use, and smart features. By setting its sights on producing a ‘dream car’ akin to Porsche and Tesla, Xiaomi is positioning itself as a contender in the competitive electric vehicle market in China, where innovation and affordability are key drivers of consumer interest. As the industry continues to evolve and adapt to changing market conditions, Xiaomi’s foray into electric vehicles signals the company’s commitment to diversifying its product portfolio and leveraging its expertise in consumer electronics to compete in new and emerging sectors.
