Xiaomi Electric Car Sales Exceed Expectations

Xiaomi’s foray into the electric vehicle (EV) market has seen remarkable success, with sales of its debut electric car surpassing initial projections by three to five times. CEO Lei Jun announced this development during a live stream on Douyin, attracting over 34 million viewers.

Surpassing Projections:

Xiaomi’s first electric car, the SU7, inspired by Porsche’s design cues, has garnered significant attention since its launch. 

Despite entering a competitive Chinese EV market, the SU7 stands out with its attractive pricing. The base model starts at under $30,000, $4,000 cheaper than Tesla’s Model 3 base model in China.

Early Deliveries and Market Impact:

The company expedited the standard SU7 model deliveries by 12 days, beginning with shipments in Beijing and Shenzhen. While Xiaomi expects to incur losses on the SU7, it commenced deliveries ahead of schedule, further bolstering its market presence.

Xiaomi is focused on the SU7 and has no intentions to venture into off-road vehicles. Lei emphasized the importance of software iteration, aiming for monthly updates to enhance user experience.

Product Expansion:

In addition to the standard SU7, Xiaomi plans to introduce Max models this month and Pro models by the end of May, expanding its product lineup to cater to diverse consumer preferences.

Wei Jianjun, CEO of Great Wall Motor, lauded Xiaomi’s achievement in producing an electric car within three years, underscoring its disruptive impact on the Chinese EV market.

Market Response and Analyst Predictions:

Xiaomi’s entry into the EV sector has prompted competitors to announce price cuts and subsidies, reflecting the disruptive force it poses. 

While analysts anticipate substantial losses for Xiaomi due to aggressive pricing strategies, its financial robustness and technological expertise position it favorably in the evolving EV landscape.