Xiaomi, a leading Chinese technology firm, has announced its entry into the electric vehicle (EV) sector, with plans to begin deliveries of its inaugural EV model this month. This move marks Xiaomi’s first venture into the highly competitive automotive industry, where China holds a significant lead. Chinese automakers are renowned for their advanced technological capabilities, which enhance both functionality and customer experience in the EV domain.
The official price of Xiaomi’s new EV will be disclosed on March 28. As China’s fifth-largest smartphone manufacturer, Xiaomi operates 59 retail outlets across 29 cities in the country, all poised to accept orders for the new vehicle. This development occurs amidst a fierce price competition among major players like BYD and Tesla in China, which is the world’s largest car market.
At the previous year’s Speed Ultra 7 (SU7) reveal, Xiaomi CEO Lei Jun expressed the company’s ambition to rank among the top five global car manufacturers. Xiaomi has committed to investing $10 billion (£7.8 billion) over the next decade in its automotive division.
Lei highlighted the SU7’s “super electric motor” technology, which reportedly outpaces certain Tesla and Porsche EV models in acceleration. Xiaomi anticipates that integrating the car’s operating system with its smartphones and other devices will attract its current consumer base. The company has secured necessary regulatory approvals, distinguishing itself amid the burgeoning number of new entrants in China’s electric car sector.
Production of the SU7 is to be undertaken by a BAIC Group subsidiary, at a Beijing facility with an annual capacity of 200,000 units. Amidst escalating price wars in the Chinese EV market, where industry giants like Tesla and BYD are reducing their prices, Xiaomi’s entry has been met with enthusiasm, reflected in a more than 10% surge in its Hong Kong stock prices following the announcement.
