China’s Xiaomi has officially published its highly anticipated electric car; the new Speed Ultra 7 (SU7) sedan, in Beijing on Thursday night. Lei Jun is the founder and CEO of the popular Chinese smartphone brand and she announced that the company’s first electric vehicle would be priced between 215,900 yuan ($29,874) and 299,900 yuan ($41,497) in China.
The starting price undercuts Tesla’s Model 3 sedan by about $4,000,with the Model 3 beginning at 245,900 yuan in China. Lei had hinted at the launch by expressing his desire for the SU7 to be the “best-looking, easiest to drive, and smartest car” priced below 500,000 yuan ($69,180).
Xiaomi aims to create a “dream car” on par with Porsche and Tesla, Lei stated on Weibo Wednesday and she is emphasizing the need to learn from these renowned car manufacturers to build quality vehicles. Targeting premium consumers, Xiaomi’s new car is competitively priced against foreign rivals. For instance, the imported Porsche Taycan starts at 898,000 yuan ($124,248), while Tesla’s Model S begins at 698,900 yuan ($96,700) in China.
In China, electric vehicles (EVs) are notably cheaper compared to other regions. BYD’s entry-level model, the Seagull hatchback, is priced at just 69,800 yuan ($9,658). The standard version of Xiaomi’s SU7 boasts a starting range of 700 kilometers (435 miles), surpassing the long-range version of Tesla’s Model 3, according to Lei.
Within 27 minutes of sales commencement at 10 p.m. Beijing time on Thursday, orders for the car surpassed 50,000 units, as announced by Xiaomi. Lei expressed his immense excitement during the launch event on Thursday night, which was attended by founders and CEOs of several Chinese EV makers.
Xiaomi’s foray into the automotive industry comes amid fierce competition in China’s EV market which has become oversaturated with over 200 major manufacturers. Facing a price war and weaker consumer demand, average profit margins dwindled to 5% in 2023, with BYD reporting its slowest quarterly profit growth in two years earlier this week.
Xiaomi’s SU7 has been showcased in showrooms across 29 cities in mainland China since Monday. Renowned for its smartphones and consumer electronics, Xiaomi captured 13% of global and Chinese smartphone sales in the final quarter of 2023. It ranked fifth in China for the full year.
