Chinese smartphone maker Xiaomi unveiled its highly anticipated electric vehicle (EV), the SU7, venturing into the competitive EV market with a product that draws inspiration from Porsche design and undercuts the price of the Tesla Model 3 ( NASDAQ .
The Xiaomi SU7 is an electric sedan that has dimensions of 4997 mm long, 1963 mm wide and 1455 mm high, along with a wheelbase of 3000 mm. It offers two wheel size options: 19 inches and 20 inches, with tire specifications of 245/45 R19 and 245/40 R20, respectively. Xiaomi has presented two versions of the SU7, one equipped with lidar and the other without it.
The SU7's in-car system will run on Xiaomi's HyperOS, a proprietary operating system developed in-house that is versatile enough to operate both smartphones and vehicles.
During an event attended by industry leaders including executives from Nio and Xpeng, Xiaomi CEO Lei Jun announced the entry of the standard SU7 EV model priced at 215,900 yuan ($29,872.02), with its variants Pro and Max priced at 245,900 yuan and 299,900 yuan. yuan, respectively.
“We currently forecast an EV shipment of 60,000/131,000/252,000 units by 2024/25/26E. Co. announced that it received 50,000 orders in 27 minutes after launch, which is encouraging,” Citi analysts said in a note.
Highlighting the affordability of the SU7 compared to the Tesla Model 3, which starts at 245,900 yuan in China, Lei highlighted Xiaomi's ambition to offer a superior product. She highlighted the SU7's 700-kilometer range, which surpasses the Tesla Model 3's 567 kilometers, and drew parallels with Porsche's high-end models such as the Taycan and Panamera.
The move fulfills Lei's 2021 promise to invest $10 billion in the auto sector as his latest major business initiative. Xiaomi has partnered with BAIC Group for manufacturing and quickly sparked consumer interest, receiving 50,000 orders within 27 minutes of pre-orders opening.
Despite the challenges of transitioning from electronics to automobile manufacturing, a journey that Lei described as “extremely difficult,” Xiaomi is ready 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 is not yet confirmed.
The launch comes at a difficult time for China's automotive 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 if consumers will shift from associating Xiaomi with affordable consumer goods to premium electric vehicles.
However, Xiaomi's diversification and expertise in smart technology can provide a competitive advantage in the electric vehicle landscape, particularly in the smart cabin features appreciated by Chinese consumers.
“We believe the next follow-up includes order update, delivery progress and shipment increase, etc. The next catalyst for the group includes Investor Day/Beijing Auto Show (April), results of 1Q24 (May), the launch of Mi MIX FOLD (2Q24)”. the analysts added.
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