Xiaomi, a leading Chinese technology firm, will make its debut in the automotive industry with the delivery of its first electric vehicle (EV) later this month. The announcement, scheduled for March 28, will reveal the pricing details of the eagerly anticipated vehicle.
Known for its prominence in the smartphone industry as China’s fifth-largest manufacturer, Xiaomi is extending its market reach to 59 stores across 29 cities nationwide, preparing to accept orders for its inaugural EV.
This move emerges amid escalating competition and a price war among key players like BYD and Tesla in China, the largest car market globally. During the unveiling of the Speed Ultra 7 (SU7) last year, Xiaomi’s CEO Lei Jun expressed the company’s ambitious goal to rank among the world’s top five automakers.
Xiaomi has committed to a significant investment of $10 billion in its automotive venture over the next decade. According to Mr Lei, the SU7, equipped with “super electric motor” technology, boasts acceleration capabilities surpassing confident Tesla and Porsche models.
The company is banking on integrating its vehicle’s operating system with its smartphones and other devices to attract its existing customer base.
Authorities have greenlit Xiaomi’s entry into the electric car market, distinguishing it from numerous new entrants as the Chinese government seeks to regulate the influx of competitors.
The SU7 is produced in collaboration with a BAIC Group unit, a state-owned automaker, at a Beijing facility designed to manufacture up to 200,000 vehicles annually.
The intensification of China’s EV market price war comes as Tesla, led by billionaire Elon Musk, implements significant price reductions on its vehicles in China, a strategy mirrored by local competitor BYD.
Following the announcement, Xiaomi’s shares surged more than 10% on the Hong Kong stock exchange, signalling investor enthusiasm for the tech giant’s automotive venture.
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