Xiaomi, a Chinese smartphone company, has just launched its first electric car, the SU7, and it’s already attracting attention. The standard model costs about $29,872, with a higher-end version priced at around $41,589. Within just 27 minutes of going on sale, Xiaomi received over 50,000 orders.
This move into the electric car market comes at a time when global sales growth is slowing down, leading to price competition. Xiaomi is now competing directly with other electric vehicle giants like Tesla and BYD. The starting price of Xiaomi’s SU7 is lower than Tesla’s Model 3 in China.
The SU7 boasts a minimum range of 700km (435 miles), surpassing Tesla’s Model 3. What’s interesting is that Xiaomi is integrating the car’s operating system with its other devices like phones and laptops, hoping to appeal to its existing customer base.
Xiaomi is a major player in the smartphone market, holding about 12% of the global market share. A unit of BAIC Group, a state-owned car manufacturer, in Beijing, will manufacture the SU7, which has been compared to Porsche’s Taycan and Panamera models.
While this venture into the car market is a significant move for Xiaomi, it’s also a challenging one. Notably, Apple recently scrapped its plans to build an electric car, indicating the difficulties tech companies face in this industry.
However, Xiaomi seems confident in its brand’s relevance in China and has committed to investing $10 billion in its vehicle business over the next decade.
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China’s electric vehicle market is mature and stable, with a strong battery supply chain and a growing charging network. Tesla has been reducing its car prices in China, responding to local competition like BYD, the top-selling EV maker.
Xiaomi’s entry into the car market is happening amid intensifying price competition in China and global trade disputes over EV subsidies.
Despite these challenges, Xiaomi aims to establish itself in the electric car market, controlling its strong presence in China and its loyal customer base.