Xiaomi’s foray into the automotive sector has made a significant impact, with the company securing an impressive 75,723 pre-orders for its SU7 electric sedan within just a month since its launch in late March. This unprecedented surge in demand has propelled Xiaomi to set a new record for an EV startup. Xiaomi’s founder, Lei Jun, outlined the company’s ambitious plans, aiming to deliver over 10,000 units of the SU7 by June and targeting more than 100,000 deliveries this year. To cater to the escalating demand, Xiaomi has accelerated deliveries of the standard and Max versions of the SU7 to April 18, twelve days ahead of schedule, and intends to introduce Pro models by the end of May.
The SU7, inspired by the design cues of Porsche, has been positioned as a more affordable option compared to Tesla’s Model 3 in China, sparking an intense EV price war in the country’s massive auto market. Competing automakers have responded with price cuts and subsidies in light of Xiaomi’s competitive entry.
Xiaomi’s extensive resources and expertise in smartphones have given it an edge over many EV startups. The robust pre-orders for the SU7 are a testament to its strong demand, with potential wait times of four to seven months for buyers. The company has already produced 5,000 SU7 vehicles, known as the “Founder’s Edition,” which come with exclusive accessories for early purchasers. The initial batch of SU7 deliveries is expected to commence across 28 Chinese cities in the near future.
While Xiaomi may incur financial losses on the SU7, the company remains optimistic about its EV venture and has committed a substantial investment of $10 billion in the auto business. Some analysts, however, predict that Xiaomi could face significant financial challenges, estimating a potential net loss of 4.1 billion yuan (approximately $566.82 million) based on projected sales volume.
Xiaomi’s established presence in the Chinese market across various tech and electronics segments has made it a force to be reckoned with in the EV industry. Other Chinese EV brands have responded to the SU7’s launch with price cuts and subsidies, highlighting Xiaomi’s formidable competitive position. The company has urged suppliers to increase production to meet the soaring demand for the SU7.
