Xiaomi, famous for its reasonable tech items, including smartphones and domestic appliances, has wandered into the competitive electric vehicle (EV) market with the launch of its SU7 model in Beijing. Estimated at 215,900 yuan ($29,868), the SU7 aims to challenge solid players like BYD and Tesla in China’s quickly developing EV division.
With features like sound simulation, karaoke gear, and a mini-fridge, Xiaomi aims to position the SU7 as the “best-looking, best-driving, and most intelligent car” under 500,000 yuan. CEO Lei Jun states that the SU7 competes with Tesla’s Model 3 and outperforms it in certain viewpoints, focusing on a highly competitive price section between 200,000 to 250,000 yuan.
Xiaomi’s strategy leverages its expansive client base from the smartphone market, assessed at around 20 million premium smartphone users. By focusing on affluent consumers with a premium EV, Xiaomi looks to counterbalance manufacturing costs regularly faced by EV startups and carve a niche against renowned brands like Tesla and Nio.
The launch of Xiaomi’s SU7 comes amid furious competition in China’s EV market, with players like BYD and XPeng confronting challenges such as market price changes and profitability issues. Despite ambitious goals, Evergrande NEV, a prominent player, battles for survival amid dismal deals and difficulties from its parent company’s financial misfortunes. China’s EV sector’s fast development underscores the nation’s commitment to transitioning towards electric and hybrid models to combat greenhouse gas emissions by 2035.
