China’s tech giant Xiaomi is set to commence sales of its electric cars this month, marking its inaugural venture into the fiercely competitive automotive industry. The company’s first electric vehicle (EV) is expected to be delivered soon, with its price slated for announcement on March 28th.
With 59 stores spread across 29 cities nationwide, the fifth-largest smartphone maker in China is ready to accept orders for its new electric car. This move comes amidst escalating price competition between established players like BYD and Tesla in China, the world’s largest car market.
Xiaomi’s CEO Lei Jun unveiled the Speed Ultra 7 (SU7) last year, expressing the company’s ambition to rank among the top five car manufacturers globally. Backed by a $10 billion investment over the next decade, Xiaomi aims to leverage cutting-edge “super electric motor” technology in its vehicles, boasting acceleration capabilities that rival some Tesla and Porsche models.
Additionally, Xiaomi plans to integrate the car’s operating system with its existing suite of devices, appealing to its vast customer base. Notably, Xiaomi’s entry into China’s electric car market has received approval from authorities, amidst efforts to regulate the influx of new players.
Manufactured by a subsidiary of the state-owned BAIC Group at a Beijing plant capable of producing up to 200,000 vehicles annually, the SU7 represents Xiaomi’s bold step into the automotive realm. This launch coincides with a price war gripping China’s EV market, with Tesla reducing prices significantly in response to local competitors like BYD slashing their prices.
Following today’s announcement, Xiaomi’s shares surged by over 10% in Hong Kong, signaling investor optimism in the company’s expansion into the electric car sector.
