Xiaomi is set to roll out its maiden electric vehicle amid intensifying market competition.
Chinese tech juggernaut Xiaomi has announced plans to commence deliveries of its inaugural electric vehicle (EV) this month, marking its inaugural venture into the fiercely competitive automotive sector. The pricing details of the vehicle are slated for revelation on March 28, adding anticipation to the debut.
Positioned as China’s fifth-largest smartphone manufacturer, Xiaomi has strategically established 59 stores across 29 cities nationwide to facilitate pre-orders for the EV, capitalising on its extensive retail network. This strategic move comes amidst escalating price competition among industry players like BYD and Tesla, especially within China, the world’s largest automotive market.
The unveiling of the Speed Ultra 7 (SU7) last year signalled Xiaomi’s ambitious goal of securing a spot among the world’s top five automakers, as articulated by CEO Lei Jun. Bolstering this vision, the company has committed a substantial $10 billion investment over the next decade to fortify its foothold in the burgeoning electric vehicle landscape.
Mr. Lei highlighted the SU7’s cutting-edge “super electric motor” technology, boasting acceleration capabilities that rival some of Tesla’s and Porsche’s EV offerings. Leveraging Xiaomi’s existing ecosystem, the vehicle features a shared operating system with the brand’s smartphones and other devices, aiming to resonate with its vast customer base.
Amid a regulatory push to manage the influx of new entrants into China’s electric vehicle market, Xiaomi has secured approval from authorities, positioning itself as a promising contender in the competitive landscape. Production of the SU7 will be spearheaded by a subsidiary of the state-owned automotive titan BAIC Group at a state-of-the-art facility in Beijing, with an annual capacity of up to 200,000 vehicles.
Xiaomi’s foray into the automotive realm coincides with heightened price competition in China’s EV sector, spurred by aggressive moves from industry frontrunners. Tesla’s recent price adjustments in the Chinese market, coupled with similar initiatives from domestic rivals like BYD, have intensified market dynamics, underscoring the significance of competitive pricing strategies.
Following the announcement, Xiaomi’s stocks surged by over 10% in Hong Kong, reflecting investor optimism surrounding the company’s venture into the electric vehicle arena.
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