Xiaomi’s entry into the electric vehicle market comes at a time of intense competition in the industry in China. With over 200 major manufacturers producing pure EVs and plug-in hybrids, the market has become overcrowded, and a price war has erupted. Average profit margins have fallen to just 5% in 2023, according to official statistics.
Xiaomi’s SU7 has been on display in showrooms in 29 cities across mainland China since Monday, according to Lei Jun, founder and CEO of Xiaomi. The company has announced that it would invest $10 billion over the next decade into a subsidiary focused on smart EVs.
The launch of the SU7 has generated significant interest, with orders exceeding 50,000 units within 27 minutes since sales started. The pricing of the SU7 is competitive, and the vehicle’s range is better than that of Tesla’s Model 3, making it an attractive option for consumers.
Xiaomi’s entry into the electric vehicle market represents a significant expansion of the company’s product offerings and marks a new era in the industry. As the market continues to grow and evolve, it will be interesting to see how Xiaomi’s SU7 fares against its competitors and how the company’s future plans for electric vehicles unfold.