The popular Chinese smartphone brand Xiaomi has entered the world of electric cars. Last Thursday, Xiaomi officially launched the New Speed Ultra 7 (SU 7) model in Beijing, the capital of China.
Xiaomi founder and CEO Lei Jun said that Xiaomi’s first electric car will sell for $41,497, up from $29,874.
According to CNN, the price of Xiaomi’s car is $4,000 less than Tesla’s car of the same model.
Lei Jun said earlier last week that he wants to launch the SU7 as the most beautiful, smart, and easy-to-drive car on the market, priced under $69,180. Last Wednesday, he also said that Xiaomi wants to bring dream cars to the market like Porsche and Tesla. He feels that these two companies should learn from each other to make better cars.
Earlier, Xiaomi said that they wanted to capture the attention of high-end consumers by bringing new cars into the market. However, they have taken a competitive stance in terms of pricing. The price of imported Porsche Tectonic in the Chinese market fell to 1 lakh, 24 thousand, and 248 dollars. In addition, one of Tesla’s best-brand sedans, the Model S, is priced at $96,700.
The price of electric cars in the Chinese market is much lower than in other countries in the world. For example, BYD’s most affordable model is the Seagull hatchback. Its price is only 9 thousand 568 dollars.
Xiaomi’s SU7 electric car mileage is 700 km; Lei Jun said that it is more than the Tesla Model 3.
Within the first 27 minutes on the day of the launch of the marketing program, Xiaomi’s purchase order for this model exceeded 50,000 units. Lei Jun could not hide his excitement at this fact.
Xiaomi’s entry into the world of electric cars comes at a time when there is fierce competition among companies to dominate the electric car market in China. China is the biggest market for electric cars worldwide. The Chinese government has given huge subsidies to this sector over the past decade. At the same time, the number of competitors in the Chinese market has increased.
Currently, more than two hundred major companies are developing fully electric cars and plug-in hybrids. China’s economic situation is not going well. This reality led to price competition between companies as consumer demand fell last year.
Since last Monday, Xiaomi’s SU7 car has been on display at dealerships in 29 cities in mainland China.
Although new in the car market, Xiaomi is a leader in the smartphone market. According to Counterpoint Research, Xiaomi had a 13 percent share of the global and Chinese smartphone markets in the last quarter of 2023.
In 2021, Xiaomi announced an investment of 10 billion, or 1 trillion dollars, to develop smart electric cars.
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