Xiaomi Enters EV Market, Targets Tesla’s Dominance
Chinese tech giant Xiaomi has entered the electric vehicle (EV) market with the launch of its first electric car, the SU7. The company’s CEO, Lei Jun, unveiled the vehicle at an event, announcing two versions: the standard SU7 priced at 215,900 yuan ($29,872) and the Max version at 299,900 yuan. Within just 27 minutes of sales opening, Xiaomi received over 50,000 orders for the new EV.
Xiaomi’s foray into the electric car industry comes amid a slowdown in global sales growth, prompting a competitive price war. By entering the market, Xiaomi joins established EV rivals like Tesla and BYD. The starting price of Xiaomi’s SU7 undercuts Tesla’s Model 3 in China.
The SU7 boasts a minimum range of 700km (435 miles), surpassing the Tesla Model 3’s range. Xiaomi aims to leverage its shared operating system across various devices, including smartphones and laptops, to appeal to its existing customer base.
Manufactured by a unit of the state-owned BAIC Group, Xiaomi’s electric car will be produced at a plant in Beijing with a capacity of up to 200,000 vehicles annually.
Bill Russo of Automobility noted Xiaomi’s confidence in the EV market, contrasting it with Apple’s recent cancellation of its EV plans. Xiaomi plans to invest $10 billion in its vehicles business over the next decade.
The Chinese EV market offers a stable ecosystem for manufacturers, with a robust battery supply chain and a growing charging network. However, competition in the market is fierce, leading to price cuts by companies like Tesla and BYD.
While the EV market in China faces challenges such as economic slowdown and government disputes, Xiaomi’s entry signifies its commitment to the sector and its confidence in its brand’s relevance.
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