Xiaomi, the renowned Chinese consumer tech giant, has unveiled its inaugural electric vehicle (EV) in Beijing, marking its entry into the fiercely competitive automotive industry within the world’s largest car market.
The EV sector in China has experienced rapid growth in recent years, primarily driven by purchasing subsidies that were terminated in late 2022. With numerous domestic automakers engaged in intense price competition to gain traction in this crowded market, Xiaomi is now stepping into the arena.
Best known for its affordable smartphones and home appliances, Xiaomi’s CEO Lei Jun emphasized the significance of their EV venture, expressing his commitment to the SU7 EV. Priced at 215,900 yuan ($29,868) for the basic model, the SU7 boasts a sleek and sporty design available in nine colors, along with features like “sound simulation” to emulate the experience of driving a sports car, as well as additional amenities such as karaoke equipment and a mini-fridge.
Lei Jun positioned the SU7 as a competitor to Chinese automotive giant BYD and Elon Musk’s Tesla, asserting its superiority over Tesla’s Model 3 in certain aspects. Xiaomi aims to offer “the best-looking, best-driving and smartest car” priced below 500,000 yuan, targeting the fiercely competitive segment in the Chinese EV market.
Leveraging its experience in the smartphone industry, Xiaomi plans to appeal to its existing user base with the SU7. By entering the premium EV segment, Xiaomi seeks to establish a foothold against established brands like Tesla and Nio, while potentially offsetting the high manufacturing costs typically faced by EV startups.
The launch of the SU7 follows closely after BYD, the leading global EV seller, reported record annual profits and announced plans for rapid overseas expansion into Southeast Asia, Latin America, and Europe, despite encountering challenges related to market fluctuations and promotional policy shifts earlier in the year.
