Chinese tech giant Xiaomi, renowned for its dominance in smartphone manufacturing, is now setting its sights on the automotive industry with remarkable fervor.
As of April, Xiaomi has amassed an impressive 75,723 orders for its latest offering, the SU7 electric sedan, with plans to deliver over 10,000 units by June. Founder Lei Jun announced this milestone on Thursday, highlighting the record-setting pace for an electric vehicle (EV) startup. These orders, secured with non-refundable deposits, have flooded within just a month since the SU7’s late March launch.
During an event at the Beijing auto show, Lei Jun unveiled Xiaomi’s ambitious delivery goal, aiming for more than 100,000 SU7 deliveries this year. The company intends to maintain a strong focus on the Chinese market for the next three years, as outlined in an investor meeting.
To meet this demand, Xiaomi accelerated deliveries of the standard and Max versions of the SU7 to April 18, twelve days ahead of schedule. Additionally, the company plans to introduce Pro models by the end of May.
The SU7’s debut, inspired by Porsche’s styling cues, comes with a pricing strategy that undercuts Tesla’s Model 3, sparking a fierce EV price war in China’s massive auto market. Competing automakers have responded with price cuts and subsidies in reaction to Xiaomi’s entry.
During Thursday’s briefing, Lei Jun acknowledged that Xiaomi’s auto team of 6,000 is insufficient, calling for global talent to join the company’s automotive ambitions.
The SU7, also known as the Speed Ultra 7, enters a competitive Chinese EV market with a base model price tag of under $30,000, positioning it as a more affordable option than Tesla’s Model 3 in China.
Analysts recognize Xiaomi’s advantage over many EV startups due to its substantial resources and expertise in smartphones. Robust pre-orders for the SU7 indicate strong demand, with potential wait times of four to seven months for buyers.
Xiaomi has already produced 5,000 SU7 vehicles, dubbed the “Founder’s Edition,” a special edition limited production version of the EV that comes with additional accessories for early purchasers.
Lei Jun announced on social media that deliveries of the initial batch of SU7 vehicles would start across 28 Chinese cities soon. Despite Xiaomi losing some money on the SU7, they are bullish about the EV venture and have committed an investment of $10 billion in the auto business. Some analysts, however, foresee Xiaomi losing a significant amount of money, estimating a net loss of 4.1 billion yuan or about $566.82 million based on projected sales volume.
Xiaomi’s competition in China is wary of its position in the market, given its presence in practically every segment of the tech and electronics industry. In response to the SU7’s launch, other Chinese EV brands have announced price cuts and subsidies. Xiaomi has urged suppliers to ramp up production to meet the soaring demand for the SU7.
