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Xiaomi Accelerates Electric Vehicle Ambitions with SU7 Sales and New Model Launch
On Tuesday, Chinese tech giant Xiaomi announced plans for the sports variant of its SU7 electric sedan, which will be available for preorders at a starting price of approximately $114,304.
In a notable achievement, the company reported delivering over 20,000 SU7 EVs in October alone, marking a significant increase in production within the highly competitive electric vehicle (EV) sector. This announcement underscores Xiaomi’s strategy to establish itself in the electric car market, following its initial foray into the automotive industry in 2021 with a dedicated manufacturing facility.
Xiaomi’s SU7 was launched in March at a price lower than Tesla’s Model 3, which contributed to its strong market entry. To date, the company has delivered more than 75,000 units of the SU7 model. In contrast to established players, such as Xpeng and Nio, which took several years to achieve similar sales milestones, Xiaomi appears to be gaining traction much quicker.
Although Xpeng set a monthly record of over 20,000 car deliveries in September, partly attributed to its newly introduced budget brand, Nio has faced challenges maintaining delivery numbers above 20,000 units per month. Meanwhile, Zeekr, a brand from Geely, reported achieving over 100,000 vehicle deliveries in just 1.5 years since its inception, marking a growing competitive landscape for EV manufacturers.
Analyst Brian Tycangco from Stansberry Research remarked on Xiaomi’s growing influence in the global EV market, citing the impressive delivery figures as evidence of its competitiveness. He also noted that the company’s gross profit margins in the EV sector were comparable to those of its rival Xpeng, suggesting a positive trend as Xiaomi boosts production capacity.
In addition to its current offerings, Xiaomi has set its eyes on the high-end segment with the SU7 Ultra, which promises enhanced performance and technology expected for release in March 2025. The company noted that it received more than 3,600 preorders in just 10 minutes on the first day of availability, each requiring a deposit of 10,000 yuan.
The SU7 Ultra has made headlines for reportedly becoming the fastest four-door sedan to complete the Nürburgring race track, a feat that may bolster sales of the existing premium SU7 Max model. Following these developments, Citi analysts have revised their delivery expectations for Xiaomi, indicating an optimistic projection of 250,000 vehicles for the following year, a notable increase from previous forecasts.
In terms of market competition, Tesla remains a dominant player in China’s EV segment, with its Model Y emerging as the best-selling battery-powered vehicle in September, and the Model 3 following closely. Xiaomi’s SU7, however, has positioned itself within the market, ranking 17th with 13,559 units sold last month. Currently, Xiaomi’s automotive offerings are limited to the Chinese market, with plans for international expansion taking an estimated two to three years.
The recent announcements not only enhance Xiaomi’s standing in the automotive sector but also complement its broader strategy as it continues to innovate in the tech space, having recently launched its flagship Mi 15 smartphone, which utilizes Qualcomm’s latest chipset.
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