Chinese tech giant Xiaomi is set to enter the electric vehicle (EV) market with its debut electric car, the Speed Ultra 7 (SU7), with orders opening on Thursday.
The launch of the car priced below 500,000 yuan ($69,186; £54,836) is aimed at competing directly with established rivals like Tesla and BYD. The move comes amid a global slowdown in EV sales, sparking a fierce price war among manufacturers.
Xiaomi plans to leverage its existing customer base by offering a shared operating system with its smartphones, laptops, and other devices.
With its SU7 model, Xiaomi aims to capitalise on its status as the third-largest seller of smartphones globally, boasting a market share of approximately 12%, according to research firm Counterpoint. The SU7, teased by Xiaomi since last year, has drawn comparisons to renowned sports car models like Porsche’s Taycan and Panamera.
The SU7, manufactured by a unit of the state-owned car manufacturer BAIC Group at a plant in Beijing, marks a significant milestone for Xiaomi, capable of producing up to 200,000 vehicles annually. Bill Russo of Automobility emphasised Xiaomi’s confidence in its brand’s relevance in China’s evolving automotive landscape, highlighting the importance of establishing a consumer market for Xiaomi as a smart EV brand.
While Xiaomi’s entry into the EV market demonstrates its commitment to innovation and diversification, other tech giants, like Apple, have faced challenges in the same arena. Despite potential hurdles, Xiaomi plans to invest $10 billion over the next decade in its vehicle business, indicating its long-term commitment to the EV market.
Abhishek Murali from research firm Rystad Energy noted China’s mature EV market and robust ecosystem as conducive factors for Xiaomi’s expansion. However, Xiaomi enters a competitive landscape with Tesla aggressively reducing prices in China, prompting local rivals like BYD to follow suit.
As Xiaomi prepares to navigate the competitive landscape, it stands as one of the few new entrants approved by authorities amidst efforts to regulate the influx of players into the Chinese EV market.
Xiaomi’s entry adds a new dimension to the industry’s competitive landscape, amidst ongoing trade disputes and uncertainties.
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