Xiaomi launched the SU7 electric car in China as the smartphone maker took aim at EV giant Tesla

Chinese smartphone maker Xiaomi on Thursday launched a sporty electric car with styling cues from Porsche and a rock-bottom price Tesla’s The Model 3 highlights stiff competition from new entrants in an already crowded EV market in China.

During the two-hour long event, Xiaomi CEO and founder Li Jun addressed a packed room that included Chinese business owners. E.V Manufacturers Nio and Xpeng that standard SU7 The EV model will be priced at CNY 215,900 ($29,872.02 or approximately Rs. 24,89,948), while the Pro and Max versions will be priced at CNY 245,900 (approximately Rs. 28,35,934) and CNY 299,900 (approximately Rs. 34,900).

“It is 30,000 (CNY) cheaper than Model 3,” he said. Tesla’s Model 3 starts at CNY 245,900 in China.

He also said that many of the SU7’s capabilities, which have drawn comparisons with Porsche’s Taycan and Panamera models, surpass those of Tesla and Porsche. For example, its minimum range of 700 km beats the Tesla Model 3’s 567 km.

The launch fulfills the wish of the Xiaomi founder, who announced the company’s foray into EVs in 2021 and a $10 billion (approx. Rs 83,348 crore) investment in his auto business as the “last big business venture” of his life. Promised to invest.

The company formed a manufacturing partnership with state-owned automaker BAIC Group and first showcased a short sedan called the SU7 – Speed ​​Ultra 7 – in December.

The company, known for its wide range of smartphones and affordable devices, started taking orders for the SU7 at 10pm Beijing time (1400 GMT) and said it received 50,000 orders in the first 27 minutes.

Standard and Max models will begin shipping in late April, and Pro models will follow by late May.

Lee also said that the transition from electronics to car manufacturing was not easy. Lee said, “In three years of developing this car, my biggest realization is that making cars is extremely difficult. “So today, anyone who is still persevering in making cars is a hero of our time. Is.”

The SU7 will go on sale in 211 stores in 39 cities across China by the end of this year, he added. Xiaomi has not said if it has any plans to sell the car overseas.

Price war

Analysts are divided on whether Xiaomi’s car project will succeed. Some say it’s a natural extension for the company, whose rice cookers, air purifiers and other electronics are ubiquitous in Chinese homes.

But the SU7 marks a departure from the company’s image as an affordable brand. “Can (Chinese consumers) make the leap psychologically from mass-market, cool, cheap consumer products and home products to premium EVs?” said Tu Li, founder of consultancy Sino Auto Insights.

Also, the car goes on sale during a tough time for China’s auto market.

“The current market environment is quite challenging for new entrants with the top 10 players steadily increasing their market share,” said Gavekal Dragonomics analyst Ernan Cui.

“If Xiaomi cannot sell on a large scale in a short period of time, it faces the risk of long-term profitability for the company.”

Working in Xiaomi’s favor, however, is revenue from other businesses, said Sino Auto Insights’ Le.

Additionally, analysts say Xiaomi’s smartphone expertise gives it an edge over traditional automakers when it comes to smart cockpits — a feature prized by Chinese consumers.

The SU7 uses the company’s self-developed Hyper OS as the operating system that connects EV users to its other devices, including smartphones.

© Thomson Reuters 2024

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