Amidst a fierce price war, China’s Xiaomi announced on Tuesday that it will start shipping its inaugural electric car (EV), the model SU7, this month. Furthermore, the company aims to make a significant impact in the rapidly evolving electric vehicle market.
Announcing on Weibo, the fifth-largest smartphone manufacturer in China stated that it will accept orders at 59 locations across 29 cities. Additionally, the company emphasized its widespread availability. The new EV’s sticker tag is anticipated to be revealed at a launch ceremony on March 28.
The morning session saw a 7% increase in Xiaomi’s shares.
In 2023, China experienced a 21% increase in EV sales for the entire year. Additionally, sales surged by 18% in January-February. Market leader BYD has led a round of deeper price cuts this year in an effort to win over customers, as domestic demand has weakened.
Xiaomi’s chief executive, Lei Jun, stated during the Speed Ultra 7 (SU7) sedan’s December launch that the company aims to rank among the top five automakers globally.
Lei claimed that the SU7’s “super electric motor” technology could accelerate vehicles more quickly than Porsche’s and Tesla’s EVs.
Analysts predict that the car’s operating system, similar to that of Xiaomi’s well-known phones and other electronics, will appeal to the company’s current clientele. Furthermore, they anticipate a positive response from consumers due to the familiar and user-friendly interface.
With the smartphone market stagnant, Xiaomi has been striving to diversify its portfolio by venturing into electric vehicle sales. This strategic move was initially announced in 2021, marking a significant shift from its primary business focus.
A division of the state-owned automaker BAIC Group will produce its automobiles at a factory in Beijing. This facility has the capacity to manufacture 200,000 vehicles annually.
Reluctant to contribute to a glut of supply, the smartphone giant has committed to investing $10 billion in cars over a ten-year period. Consequently, it has become one of the few new entrants in China’s EV industry to receive approval from authorities.
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