Mar 28 2024: Xiaomi, a prominent technology company, has ventured into the Chinese electric vehicle (EV) market by introducing its inaugural car model, the SU7. This move has sparked a surge in the company’s shares by over 1% in Hong Kong.
Positioned at a significantly lower price point compared to Tesla’s Model 3, Xiaomi’s entry has intensified the competition in China’s electric car industry, leading to a pricing battle.
CEO Lei Jun revealed that the standard version of the SU7 will be priced at 215,900 yuan ($30,408), acknowledging that this pricing strategy may result in selling each unit at a loss. This contrasts with Tesla’s Model 3, which starts at 245,900 yuan in China.
Additionally, Xiaomi offers Pro and Max versions of the SU7 priced at 245,900 yuan and 299,900 yuan, respectively. Initially, these models will be exclusively available in the Chinese market.
Lei Jun highlighted that the SU7 outperforms the Model 3 in more than 90% of specifications, except for two areas where Xiaomi may need three to five years to match Tesla’s standards.
Emphasizing the efficiency of Xiaomi’s car manufacturing process, Lei mentioned that their factory, equipped with fully automated “key” steps, can produce an SU7 every 76 seconds, although the operational status of the factory was not immediately clarified.
Earlier discussions on social media saw Lei promoting the SU7 as the top sedan priced “under 500,000 yuan” ($69,328), with deliveries scheduled to commence by the end of April.
