The CEO of technology giant Xiaomi announced on Monday, March 25, the upcoming launch of the company’s debut electric vehicle (EV), the SU7, also known as the Speed Ultra 7.
Xiaomi aims to position the SU7 as a competitively priced option in the EV market, with a target price below 500,000 yuan ($69,424), according to a report by Reuters.
The CEO stated his goal for the vehicle is to be the “best looking, easiest to drive and smartest car,” highlighting a focus on aesthetics, user experience, and technological innovation.
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As Xiaomi prepares for orders to commence this week, the company seeks to establish a presence in the automotive industry, leveraging its expertise in electronics and tech.
The company will on Thursday evening announce its official price range and start taking orders for the SU7 car. CEO Lei Jun’s comments, made on his official Weibo account, mark the first time the company has confirmed the upper end of its price range.
Can Xiaomi match Tesla and Porsche performance?
Xiaomi, recognized for its presence in the smartphone and electronics industry, unveiled its first EV, the SU7, in December 2023.
The announcement generated attention, as Xiaomi’s CEO aims for a top-five global automaker position, highlighting the car’s acceleration system as comparable to Tesla (NASDAQ: TSLA) and Porsche.
This week, Xiaomi showcased the SU7 in 76 of its stores across China, highlighting its “ocean blue” design. The vehicle offers two variants, one with a 415-mile range and another with a 500-mile range, aimed at providing consumers with options while maintaining affordability.
Xiaomi’s move aligns with a broader trend within the Chinese tech sector, where companies like Huawei and Baidu are also collaborating on EV development.
The company has committed $10 billion to invest in the auto industry over the next decade, signaling a long-term strategic move. Chinese regulatory approval suggests cautious optimism surrounding Xiaomi’s venture into the EV market.
Navigating production challenges
Production of Xiaomi’s vehicles, handled by a subsidiary of state-owned automaker BAIC Group, faces regulatory hurdles and concerns about market oversupply. Despite these challenges, Xiaomi’s successful approval from authorities indicates a promising start to its automotive ambitions.
As Xiaomi’s EV enters the market, its success will depend on its ability to deliver innovative technology, competitive pricing, and navigate the complexities of the automotive industry’s evolving landscape.
However, Xiaomi’s entry into the EV market marks a noticeable development, and the coming months will reveal how the SU7 performs against established competitors.
