In a recent Q&A session on Weibo, Xiaomi EV, the automotive arm of the Chinese tech giant Xiaomi, hinted that its first electric vehicle, the Xiaomi SU7, may remain exclusive to the domestic market in China. Despite the company’s global aspirations of having its vehicles on streets worldwide, the focus for the initial launch seems to be on the home turf. Xiaomi EV’s push into the automotive industry began in March 2021, backed by a significant investment of €1.30 billion, with a promised €9 billion more over the next decade.
While Xiaomi’s founder and CEO, Lei Jun, expresses high hopes for the success of the Xiaomi SU7, the company has been strategic in withholding crucial details. At a recent tech launch event, specifications of the SU7 were shared, but the pricing was kept under wraps. This cautious approach is vital in the electric vehicle market, where pricing often determines a brand’s success.
Xiaomi EV aims to be among the top five global automakers within 15-20 years, with an ambitious target of becoming a key player in the smart driving space by 2024. However, Lei Jun acknowledges the challenges ahead, especially in an industry dominated by established giants. To meet its goals, Xiaomi must ship more than 10 million units annually, a formidable task for a newcomer.
Interestingly, Xiaomi EV has chosen to concentrate solely on the Xiaomi EV brand, avoiding the expansion of its lineup with vehicles from its more budget-conscious sub-brand, Redmi. This decision positions Xiaomi to carve a niche in the premium electric vehicle market, although competing with established players remains a significant challenge.
The pricing of the Xiaomi SU7 remains a mystery, with rumors suggesting figures ranging from RMB 99,000 (€13,000) to RMB 199,000 (€26,100). Xiaomi EV dismisses these speculations, emphasizing that the first EV won’t be cheap. As the automotive industry eagerly anticipates the official unveiling, consumers worldwide await more details on Xiaomi’s electric venture.
