Chinese smartphone maker Xiaomi has unveiled its much-anticipated electric vehicle (EV) SU7, entering the competitive EV market with a product whose design is inspired by Porsche but undercuts the Tesla Model 3 (NASDAQ:) in price.
The Xiaomi SU7 is an electric sedan measuring 4,997 mm in length, 1,963 mm in width and 1,455 mm in height, with a wheelbase of 3,000 mm. Two wheel sizes are available: 19 inches and 20 inches, with tire sizes 245/45 R19 and 245/40 R20, respectively. Xiaomi introduced two versions of the SU7: one with lidar and the other without it.
The SU7 car system will run on Xiaomi’s HyperOS, a proprietary operating system developed in-house and versatile enough to work with both smartphones and vehicles.
During the event, which was attended by industry leaders including executives from Nio and Xpeng, Xiaomi CEO Lei Jun announced the launch of the standard SU7 EV model, priced at RMB 215,900 ($29,872.02), with Pro and Max variants will cost 245,900 yuan and 299,900 yuan. yuan respectively.
“We currently forecast EV shipments of 60K/131K/252K units for 2024/25/26E. announced that it received 50,000 orders within 27 minutes of launch, which is encouraging,” Citi analysts said in a note.
Highlighting the SU7’s affordability compared to the Tesla Model 3, which starts at RMB 245,900 in China, Lei emphasized Xiaomi’s commitment to offering a superior product. He noted the SU7’s 700km range, which beats the Tesla Model 3’s 567km range, and drew parallels with top-end models from Porsche such as the Taycan and Panamera.
The move is in line with Lay’s pledge to invest $10 billion in the auto sector in 2021 as his latest major entrepreneurial venture. Xiaomi partnered with BAIC Group for manufacturing and quickly gained consumer interest, receiving 50,000 orders within 27 minutes of pre-orders opening.
Despite the difficulties of moving from electronics to car production – a path that Lay called “extremely difficult” – Xiaomi is determined to make an impact. The company plans to offer the SU7 in 211 stores in 39 Chinese cities by the end of the year, although international availability remains unconfirmed.
The launch comes at a challenging time for the Chinese auto market, with analysts divided over Xiaomi’s prospects. While some see the foray into premium electric vehicles as a natural extension of the Xiaomi brand, others wonder whether consumers will shift from Xiaomi’s association with affordable consumer products to premium electric vehicles.
However, Xiaomi’s diversification and expertise in smart technologies could provide a competitive advantage in the EV market, especially in the area of smart cockpit features that are valued by Chinese consumers.
“We believe the next monitoring includes order update, delivery progress, increase in shipments etc. The next catalyst for the group will be Investor Day/Beijing Auto Show (April), 1Q24 results (May), launch of Mi MIX FOLD ( 2nd quarter 24 years)”. analysts added.