Chinese technology company Xiaomi made headlines recently with the release of its first electric car, the SU7. The car is set to rival Tesla’s Model 3 in the competitive electric car market in China. Priced significantly lower than the Model 3, at 215,900 yuan ($30,408), Xiaomi CEO Lei Jun acknowledged that the company will be selling each car at a loss. Despite the lower price point, Jun claimed that the SU7 outperforms the Model 3 in over 90% of specifications, with a minimum driving range of 700 kilometers.
Xiaomi’s entry into the electric car market comes at a time when competition is fierce, with other Chinese companies like BYD, Nio, Xpeng, and Geely-owned Zeekr also offering their own electric vehicle models at competitive prices. The interest in electric vehicles in China has been steadily increasing, with sales of new energy vehicles accounting for about one-third of new passenger cars sold in the country.
At the launch event for the SU7, Xiaomi showcased a range of accessories for the car, including an in-car refrigerator, a custom front-window shade, and a smartphone holder. The company also highlighted the SU7’s compatibility with Apple’s Car Play and its integration with the iPad. In addition, Xiaomi revealed driver-assist technology for highways and cities that is set to be fully available in China by August.
The SU7 is part of Xiaomi’s broader strategy to build an ecosystem of devices connected to its new HyperOS operating system. The company has been pursuing a premiumization strategy since 2020, aiming to attract a higher-end market segment. Xiaomi President Lu Weibing has stated that there are approximately 20 million potential premium users who may be interested in purchasing the SU7.
Overall, Xiaomi’s entry into the electric car market represents a significant move for the company as it expands its product lineup beyond smartphones and consumer electronics. The SU7’s competitive pricing and impressive specifications could appeal to consumers looking for a more affordable electric vehicle option.
In my opinion, Xiaomi’s foray into the electric car market is a strategic move that aligns with the company’s broader vision of building an interconnected ecosystem of devices. By offering a high-quality electric car at a lower price point than competitors like Tesla, Xiaomi has the opportunity to carve out a significant market share in China’s growing electric vehicle market. The company’s focus on innovation and affordability could resonate with consumers and establish Xiaomi as a key player in the electric car industry.