Xiaomi, from smartphones to electric cars: the SU7 sedan is ready
The Chinese a new ace drops in the global challenge on electric cars, a challenge in which the Beijing giants already have an advantage. Xiaomi, the world's third largest smartphone manufacturer, is about to officially launch its first electric vehicle, the Xiaomi SU7, and reveal the price. Appointment scheduled for Thursday 28 March, the first step with which Xiaomi has set the internal goal of becoming one of the top three pure electric luxury car brands in the sector.
There is great anticipation, also because the founder of the company She Jun stated that the standard version of the Xiaomi SU7 has many more configurations than Tesla's Model 3. Xiaomi has already announced that 59 of its stores in 29 cities across the country will accept orders for its new sedan. According to previews from Chinese media and beyond, the price of the SU7 should be below 500.000 yuan ($69,328). This would put it in competition with the likes of Tesla in China, whose Tesla Model S starts at 698,900 yuan.
The Xiaomi sedan will be equipped, according to the company, with one “super electric motor” technology capable of faster acceleration than electric vehicles from Tesla and Porsche. According to analysts, the operating system shared with Xiaomi's popular phones and other electronic devices has great potential to appeal to the company's current customers. Xiaomi has been trying to diversify its core business into electric vehicles amid stagnating demand for smartphones.
After three years of preparations, now the electronics giant is ready to enter a high-value market considered strategic. There are around ten billion dollars on the table that Xiaomi says it wants to invest in the electric mobility sector over the course of a decade. His cars will be produced by a unit of state automaker BAIC Group, at a plant in Beijing with an annual capacity of 200,000 vehicles.
Chinese dominance in the strategic electric car sector
Xiaomi will find itself competing not only with Tesla, but also with a number of Chinese automakers, including giant BYD, Nio, Xpeng and Li Auto. Electric vehicle sales in China increased by 18% in the first two months of 2024, not far from the 21% growth achieved on an annual basis for all of 2023. This year, however, the competition looks set to become even more fierce, as demonstrates the fact that market leader BYD has conducted a series of deep price cuts to try to win over consumers in the face of weaker domestic demand.
But in the meantime, Chinese producers are increasingly looking to the international market. After some rumors about Italy, with the Italian government interested in attracting new car manufacturers between Mirafiori and beyond, BYD recently announced plans to open a manufacturing plant in Mexico, right on the doorstep of the United States. In Washington they look with some suspicion at Chinese electric cars. Recently, the US Department of Commerce opened an investigation into whether Chinese-made cars imported into the country pose a threat to national security.
Even in the European Union, Chinese electric cars are under scrutiny, as demonstrated by the investigation launched by Brussels into alleged subsidies for (potentially) introduce new duties. For a few weeks, the EU has also introduced the obligation of customs registration to apply (always potentially) duties also retroactively. We are talking about a gigantic market. China remains the top country of origin for cars imported into Europa, with a growth of 40% in quantity and 37.1% in value. With Xiaomi, a new heavyweight takes the field.