Xiaomi's Electric Vehicle Sales Soar, Eclipsing Competitors in Market, EV Affordability

Apr 22, 2024 10:26 PM EDT

LIGHT TRAILS ON HIGHWAY AT NIGHT — (Photo : PEXELS/ Pixabay)

Lei Jun, the CEO of Xiaomi, gave exciting news on Thursday about the company's electric vehicle, stating that sales have tripled or quadrupled projections. This information was released along with the early start of standard version deliveries of the SU7, the Chinese smartphone manufacturer's first electric vehicle.

Beyond Expectations, Xiaomi's EV Sales Surge

Reported by CarBuzz, Lei Jun communicated this update via a two-hour livestream on Douyin, China's equivalent to TikTok, drawing an impressive audience of over 34 million viewers. Xiaomi introduced its latest electric vehicle (EV) just last month, and within the initial 24 hours, it garnered a remarkable 88,898 orders.

Priced at approximately $30,000 after conversion from Chinese yuan, the SU7 stands at a competitive $4,000 less than the Model 3 in China. This compelling pricing strategy prompted other Chinese automakers to adjust their prices and enhance incentives to maintain competitiveness amidst Xiaomi's strong sales performance.

According to an Autolog report, Xiaomi, with its ample financial resources, anticipates operating at a loss with the SU7 electric vehicle (EV). While initially delivering a limited batch of 5,000 "Founder's Edition" cars on April 3, equipped with extra features for early adopters, Xiaomi commenced standard SU7 deliveries in Beijing and Shenzhen on Thursday.

CEO Lei, in response to online inquiries regarding future endeavors, emphasized Xiaomi's commitment to the SU7 model, with no intentions of venturing into off-road vehicles. He underscored the importance of rapid software iteration, demanding monthly updates for continuous improvement.

Alongside the standard version, Xiaomi plans to introduce Max models this month and Pro models by the end of May, further expanding its EV lineup. As reported by DaxStreet, while Lei Jun refrained from directly responding to inquiries regarding a potential sports utility vehicle (SUV), he garnered commendation from Wei Jianjun, CEO of Great Wall Motor, for Xiaomi's remarkable feat of developing the car within a mere three-year timeframe.

Moreover, according to DaxStreet's report, the introduction of Xiaomi's electric car has caused seismic shifts within the Chinese automotive landscape. In an attempt to stay competitive, a number of other Chinese electric vehicle manufacturers that were producing models that were similar to Xiaomi's have moved quickly to lower prices and implement incentive schemes.

Even with the extreme difficulties that come with operating in the very competitive auto industry, analysts are optimistic about Xiaomi's future. They list the company's robust financial standing and depth of knowledge in smartphone technology as two of its main benefits.

Analysts warn that Xiaomi's bold entry into the electric vehicle market might come at a high price. Projections indicate potential losses amounting to 4.1 billion yuan, based on anticipated sales of 60,000 units of the SU7 electric car within the current fiscal year.

Xioami's SU7

As reported by Gangnamtimes, amidst the burgeoning global electric car market, Xiaomi's SU7 has emerged as a focal point of attention. The debut electric vehicle from Xiaomi, the SU7, has captivated audiences with its revolutionary pricing and stylish design. Garnering significant interest, the SU7 has amassed over 100,000 reservations since its introduction.

The report also shared that Xiaomi is actively engaged in the development of its next electric vehicle, the SU8, a crossover model slated to follow the SU7. Set to share the Modena platform, battery, and electric motor with its predecessor, the SU8 promises continuity in technological prowess and performance.

Foreign media speculates that due to the larger body size, the SU8 may incorporate a range extender option to enhance its operational range. Anticipation surrounds the unveiling of the Xiaomi SU8, scheduled for the latter half of this year.