In a bold move amidst China’s competitive electric vehicle market, Xiaomi, the renowned Chinese smartphone company, unveiled its debut electric car, the SU7, at a price significantly lower than Tesla’s Model 3.
Xiaomi CEO Lei Jun announced on Thursday that the standard version of the SU7 would be available in China for 215,900 yuan ($30,408), acknowledging that this pricing strategy would entail selling the car at a loss. For comparison, Tesla’s Model 3 starts at 245,900 yuan in China.
Despite the lower price tag, Lei claimed that the SU7 outperforms the Model 3 on over 90% of specifications, with an impressive minimum driving range of 700 kilometers (nearly 435 miles), surpassing the Model 3’s 606 kilometers. The company received an overwhelming response, with over 20,000 orders placed within just seven minutes of its pre-order launch on March 12.
Deliveries of the SU7 are slated to commence by the end of April, with Xiaomi boasting a highly automated car factory capable of producing a new SU7 every 76 seconds.
Xiaomi’s entry into the electric car market intensifies competition in China, where companies are aggressively launching new models and slashing prices to gain market share. Other major players in the Chinese EV market include telecommunications giant Huawei, BYD, Nio, Xpeng, and Geely-owned Zeekr.
The SU7 launch event featured heads of competing electric car startups, highlighting the industry’s focus on innovation and technology. Xiaomi also showcased a range of accessories and driver-assist technologies, aligning with its broader strategy to create an ecosystem of connected devices.
While Xiaomi aims to penetrate the premium electric car segment, Lei acknowledged that there is still progress to be made before competing with brands like Porsche. The company plans to introduce a “Max” version of the SU7 aimed at competing with Porsche’s Taycan, priced at 299,900 yuan.
The SU7 marks Xiaomi’s foray into the electric vehicle market, aligning with its “Human x Car x Home” strategy and its ambition to expand beyond smartphones into interconnected devices and services. While initially targeting Chinese consumers, Xiaomi may consider overseas launches in the future, catering to a growing demand for affordable yet innovative electric vehicles.