Chinese smartphone maker, Xiaomi, is now a fully fledged EV brand as well
Chinese smartphone brand cum electric vehicle (EV) manufacturer, Xiaomi, will officially start deliveries of its first EV in China this month, it said not too long ago. This is the brand’s maiden voyage venturing into the world’s largest auto market at a time of aggressive price competition.
The smartphone maker, and China’s fifth-largest at that, said in a Weibo post that 59 of its stores in 29 cities nationwide will take orders for its new Speed Ultra 7 (SU7) sedan. A launch event is scheduled for 28 March 2024, when the new EV’s price is expected to be made public.
Moreover, China’s EV sales climbed 18 percent from January to February 2024, not far from the 21 percent growth seen for all of 2023. This year, market leader BYD led a round of deep price cutting to try to woo consumers in the face of weaker domestic demand.
At the unveiling of the SU7 in December, Chief Executive Lei Jun said Xiaomi planned to become one of the world’s top five automakers. Lei even said that the SU7 has “super electric motor” technology capable of delivering faster acceleration than Tesla’s and Porsche’s EVs, which are famous for their acceleration.
On top of that, Analysts say the car’s shared operating system with Xiaomi’s popular phones and other electronic devices will appeal to the company’s existing customers. The brand has also been seeking to diversify beyond its core business to EVs as demand for smartphones is stagnant, a plan it first flagged in 2021.
“Xiaomi’s cars are going from zero to one in a very different growth stage and facing very different user expectations compared to when Xiaomi’s smartphones went from zero to one 14 years ago. Xiaomi’s cars need to be different, and the most important aspect is smart technology.” Lei said in a Weibo post on Tuesday.
Its cars will be produced by a unit of state-owned automaker BAIC Group in a Beijing factory with an annual capacity of 200,000 vehicles. The smartphone giant has pledged to invest USD10 billion (about RM46.8 billion) in autos over a decade and is one of the few new players in China’s EV market to gain approval from authorities who have been reluctant to add to a supply glut.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
