In a groundbreaking move, Xiaomi, the renowned Chinese smartphone manufacturer, has stepped into the electric vehicle (EV) arena with the launch of its first EV, the SU7. At the grand unveiling, Xiaomi’s Chief Executive, Lei Jun, not only presented a highly anticipated sedan but also laid out an audacious vision—Xiaomi aspires to be among the world’s top five automakers.
The SU7, with “SU” denoting Speed Ultra, boasts a cutting-edge “super electric motor” technology that Lei Jun confidently claims can outpace the acceleration speeds of both Tesla (TSLA.O) cars and Porsche’s EVs. This move, however, comes at a pivotal juncture for China’s auto market, the world’s largest, grappling with overcapacity and dwindling demand, fueling a fierce price war among manufacturers.
Undeterred by the market challenges, Lei Jun expressed his unwavering optimism during the launch event. “By working hard over the next 15 to 20 years, we will become one of the world’s top 5 automakers, striving to lift China’s overall automobile industry,” he proclaimed, articulating Xiaomi’s bold ambitions. He envisions the company creating a “dream car comparable to Porsche and Tesla,” aiming to revolutionize the automotive landscape.
Beyond its performance, the SU7 is anticipated to win consumers over with its seamless integration into Xiaomi’s existing ecosystem. Leveraging the popularity of Xiaomi’s phones and electronic devices, the electric sedan promises drivers easy access to the company’s vast portfolio of mobile apps, tapping into the brand’s massive consumer electronics ecosystem.
Bill Russo, CEO of Shanghai-based advisory firm Automobility, recognizes Xiaomi’s unique advantage in the auto industry. “As such, they have a significant opportunity to break through as the automobile becomes a smart device,” Russo noted, emphasizing the potential for Xiaomi to redefine the automotive experience.
The SU7 is available in two versions, with impressive driving ranges of up to 668 km (415 miles) and an extended range of up to 800 km on a single charge. Surpassing Tesla’s Model S, which boasts a range of up to 650 km, Xiaomi is positioning itself as a formidable contender in the EV market. While pricing details remain undisclosed, Lei Jun assured that the cost would be justified, even if “a bit high,” signaling Xiaomi’s commitment to delivering premium electric vehicles.
Addressing concerns related to winter driving, Xiaomi emphasized the SU7’s fast-charging capabilities in low temperatures. The vehicle is also equipped with advanced technology enabling obstacle recognition under challenging conditions such as falling snow, a feature likely to resonate with consumers in colder climates.
Highlighting the autonomous driving capabilities of Xiaomi cars, Lei Jun positioned the company at the forefront of the industry. Despite these ambitious plans, the company share price experienced only a modest increase, finishing 0.3% lower on the Hong Kong stock exchange.
Xiaomi’s venture into the electric vehicle market is part of a broader strategy to diversify beyond its core smartphone business. The company has committed to investing $10 billion in autos over a decade, securing approval from authorities to enter the competitive EV market. Its EVs will be produced in collaboration with a unit of the state-owned automaker BAIC Group (1958.HK) in a Beijing factory with an annual capacity of 200,000 vehicles.
In the fiercely competitive Chinese EV market, Xiaomi’s primary rivals include BYD, holding a one-third market share, and Tesla, which currently commands a 9% share according to third-quarter figures from Zheshang Securities. As the company embarks on this ambitious journey, it faces both challenges and opportunities in a rapidly evolving global automotive landscape.