Xiaomi Enters Electric Vehicle Market with SU7 Launch, Aims for 4% Sales Boost Against BYD, Nio, Tesla, and Li Auto
Xiaomi, the Chinese tech giant, is gearing up to unveil its inaugural electric vehicle, the SU7, with deliveries commencing on March 28.
CEO Lei Jun expressed on Weibo that Xiaomi is prepared for a pricing competition within China’s new energy vehicle market, with no current intentions to extend sales of the SU7 beyond the domestic market.
This strategy has the potential to boost sales by as much as 4% this year, positioning Xiaomi in competition with BYD, Nio, Tesla, and Li Auto.
Anticipating a price range of 220,000-260,000 yuan, Xiaomi aims for an initial production volume of 30,000-50,000 units in the first year (informal figures).
A car experiential event is set to kick off in 29 cities on March 25.
Chinese-listed shares of Xiaomi experienced an almost 12% surge.
Xiaomi’s Leijun shared that after the official announcement of the Xiaomi SU7, reservations for the store saw a remarkable increase of more than 100,000 in just one day.
Leijun announced that the Xiaomi EV SU7 has garnered more than 100,000 orders.
Nomura anticipated that preorders for the Xiaomi SU7 would surpass expectations, attributing its ecosystem integration via HyperOS as a key factor that positions Xiaomi as a formidable competitor to Huawei. However, Nomura acknowledged the current downturn in the EV market’s valuation and the lingering uncertainty in market sentiment, which could potentially affect Xiaomi’s business performance. Consequently, Nomura adjusted its target price for Xiaomi from $18.6 to $17 and assigned a Neutral rating.
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Oh goodie. Another Tesla wannabe.