On March 25, 2024, Xiaomi’s first electric car, SU7, was displayed at the Xiaomi Auto Delivery Center in Hefei, Anhui Province, China. Chinese technology company Xiaomi’s first electric car, the SU7, will be officially launched on March 28.
Ruan Xuefeng | Visual China Group | Getty Images
Millet Chief Executive Lei Jun on Monday teased the price of the Chinese company’s first electric car ahead of its official launch this week.
“Xiaomi SU7 aims to be the best-looking, best-driving and smartest car under 500,000 yuan ($69,328),” Lei Jun said in a statement. Published on Chinese social media service Weibo.
This is the first time Xiaomi has confirmed the upper limit of the price range. This Thursday, Xiaomi will officially launch the SU7 electric car and start accepting orders.
According to another Weibo post by Lei Jun, the car is on display at Xiaomi stores in 29 cities in China. He said test drives would begin on Thursday.
Xiaomi Group President Lu Weibing previously told CNBC that the company is targeting the high-end segment of the electric vehicle market.
This would allow it to compete with similar Tesla in China. In comparison, the Tesla Model S sedan starts at 698,900 yuan, while the Model 3 starts at 245,900 yuan.
Xiaomi will also compete with a host of domestic players such as BYD, NIO, Xpeng Motors and Li Auto, many of which are also targeting the high-end EV market.
Xiaomi is best known as a smartphone and consumer electronics company. But in 2021, the company announced plans to enter the EV race. Three years later, it faces a very different EV market in China – one that is likely to face a slowing economy and fierce competition.
The electric vehicle market is in the midst of a price war triggered by Tesla at the end of 2022. This has forced other EV companies to slash prices to stimulate demand and remain competitive, putting pressure on margins and profitability across the industry.
Pricing will be key for Xiaomi in a market with so much competition and where the company doesn’t have any previous history. Xiaomi CEO Lei Jun is not losing sight of his big bet on electric vehicles.
“Three years ago, I announced that Xiaomi would enter the electric vehicle market. This is my last new adventure – I will bet my reputation and fight for the vision I firmly believe in.” Lei Jun posted on X. .
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