NEWS  Electric Vehicles  April 25, 2024  Reading time: 2 Minute(s)

Max (RS editor)

Xiaomi recently ventured into the automotive industry with the launch of its electric sedan, the SU7. What started as a bold move into a new market has turned into a sensational event, with sales of the new vehicle far exceeding expectations.

The Unexpected Boom

The SU7, a sleek and modern electric sedan, has recorded an astonishing surge in demand, taking even Xiaomi's CEO, Lei Jun, by surprise. Within 27 minutes of the car's sales opening, over 50,000 units were ordered. 

This unexpected surge is believed to be between three and five times greater than initial company forecasts, indicating a strong market reception for Xiaomi's new venture.

Why the Demand?

Several factors contribute to the SU7's sudden popularity. The car boasts a contemporary design, advanced onboard technology, and, most importantly, a competitive price point. Priced at approximately 28,000 euros after currency conversion, the SU7 significantly undercuts competitors like Tesla's Model 3, especially in European markets. This affordability, combined with Xiaomi's reputation for delivering high-quality technology at lower prices, has attracted a large number of customers.

Challenges Ahead

Despite the overwhelming success, there are concerns about the business model's sustainability. Xiaomi's CEO has acknowledged that the company stands to lose around 9,000 euros for each SU7 sold, leading to an estimated total loss of 532 million euros. This is a considerable burden for a company still finding its footing in the automotive sector. 

What Does This Mean for Xiaomi?

Xiaomi's unprecedented sales boom raises questions about its long-term strategy in the automotive industry. While the initial success is encouraging, the company's ability to manage costs and eventually turn a profit remains uncertain. Investors and industry analysts are watching closely to see how Xiaomi navigates this uncharted territory.

In any case Xiaomi SU7's surprise sales boom signals a new era of competition in the electric vehicle market, with traditional players like Tesla and BYD now facing an unexpected rival. 

 IMAGES CREDITS: XIAOMI