Xiaomi, renowned for its dominance in the smartphone industry, has ventured into the electric vehicle (EV) market with its inaugural offering, the Xiaomi SU7. CEO Lei Jun recently disclosed during a livestream on Douyin that the demand for their first electric car has surpassed initial projections by three to five times. This revelation comes as the company initiates deliveries of the standard versions of the SU7 to eager customers, even ahead of schedule.
The SU7, resembling design elements from Porsche, was introduced by Xiaomi last month, marking its entry into China's bustling EV market. Notably, its competitive price point, starting at under $30,000 for the base model, has garnered significant attention. This pricing undercuts the base model of Tesla's Model 3 in China by $4,000, setting a compelling proposition for consumers.
Early indications of the SU7's popularity were evident as Xiaomi received an overwhelming 50,000 orders within a mere 27 minutes of its unveiling. Initial deliveries commenced in late March with a special "Founder's Edition" batch, catering to early adopters with additional accessories. Now, standard model deliveries have kicked off in Beijing and Shenzhen, with Xiaomi pushing forward the schedule by 12 days, showcasing their commitment to meeting customer demand.
During the livestream, Lei emphasized Xiaomi's dedication to continuous improvement, promising over-the-air software updates at least once a month, ensuring the SU7 remains technologically current. Additionally, Xiaomi plans to roll out higher-tier variants, including the SU7 Max later this month and the SU7 Pro by May, further expanding its product lineup.
However, Xiaomi anticipates losses on each SU7 sold, a sentiment echoed by Citi analysts who estimate potential net losses of 4.1 billion yuan for this year, averaging around 68,000 yuan per car sold. Despite this financial challenge, Xiaomi's foray into the EV space has sent ripples across the market, prompting competitors to announce price adjustments and incentives for their comparable models.
While speculation about Xiaomi's potential SUV remains unanswered, reports suggest that the company is already underway with its development, utilizing a new platform that could incorporate a range-extender option. This ambitious move underscores Xiaomi's determination to establish a significant presence in the evolving landscape of electric mobility.
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