Xiaomi Will Start Delivering its First Electric Vehicles This Month

Chinese Technology Giant to Disrupt the Automotive Industry with Innovation and Competitive Pricing

NEWS  Electric Vehicles  March 12, 2024  Reading time: 2 Minute(s)

Max (RS editor)

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Xiaomi is set to commence deliveries of its inaugural EV, the Speed Ultra 7 (SU7), this month, marking its debut in the highly competitive automotive industry. With an expected price revelation slated for March 28th, Xiaomi is poised to make waves in the world's largest car market, China.

Xiaomi's foray into electric vehicles signifies a strategic shift for the company, known primarily for its innovative smartphones and consumer electronics. Leveraging its extensive retail network, Xiaomi has established 59 stores across 29 cities in China to facilitate orders for its new electric vehicle. This move underscores the company's commitment to diversifying its product portfolio and capturing new market segments.

At the unveiling of the SU7 last year, Xiaomi's CEO, Lei Jun, articulated ambitious aspirations for the company's automotive venture. Jun declared Xiaomi's aim to secure a position among the top five car manufacturers globally, signaling its long-term vision and commitment to the automotive sector. With a substantial investment of $10 billion earmarked for its vehicle business over the next decade, Xiaomi is laying the groundwork for sustained growth and innovation in the EV market.

The SU7 boasts cutting-edge technology, featuring what Xiaomi describes as a "super electric motor" capable of impressive acceleration, rivalling some of the top offerings from established EV manufacturers like Tesla and Porsche.

Additionally, Xiaomi aims to capitalize on its ecosystem integration strategy by offering a shared operating system across its smartphones, devices, and now, automobiles. This cohesive ecosystem approach is designed to enhance user experience and appeal to existing Xiaomi customers.

Despite the competitive landscape and regulatory challenges, Xiaomi has managed to secure approval from Chinese authorities, positioning itself as one of the few new entrants to gain regulatory clearance in the burgeoning electric car market. Production of the SU7 will be undertaken by a unit of the state-owned BAIC Group, leveraging a manufacturing facility in Beijing capable of producing up to 200,000 vehicles annually.

Xiaomi's entry into the electric vehicle arena comes amidst a price war in China's EV market, with competitors like Tesla and local players like BYD slashing prices to gain market share. Tesla's recent price reductions in China, coupled with aggressive pricing strategies from domestic rivals, reflect the intense competition within the sector.

 However, Xiaomi's announcement has already made a significant impact, with its shares surging by over 10% in Hong Kong following the unveiling of its electric vehicle.

As Xiaomi prepares to disrupt the automotive industry with its innovative approach and competitive pricing, all eyes are on the launch of the Speed Ultra 7 and its potential to reshape the landscape of electric mobility in China and beyond. With its blend of technological prowess, strategic vision, and market-savvy tactics, Xiaomi is poised to carve out a formidable presence in the evolving world of electric vehicles.

 MEDIA CREDITS: XIAOMI