Xiaomi Enters Automotive Sector and Commences Electric Car Sales
Chinese technology giant Xiaomi is set to make its debut in the electric vehicle (EV) market, with deliveries of its first electric car, the Speed Ultra 7 (SU7), scheduled to commence this month. Xiaomi, primarily known for its smartphones, has strategically entered the competitive automotive industry as China’s fifth-largest smartphone maker. The pricing of the SU7 is expected to be revealed on March 28.
Xiaomi’s move into the electric vehicle sector aligns with its ambition to become one of the world’s top five car manufacturers. The company has committed a significant investment of $10 billion in its vehicle business over the next decade. The SU7, equipped with “super electric motor” technology, is positioned to accelerate faster than certain Tesla and Porsche electric vehicles.
With 59 stores in 29 cities across China, Xiaomi aims to leverage its established retail network to facilitate orders for the SU7. The company also emphasizes the shared operating system with its smartphones and other devices, hoping to attract existing Xiaomi customers to its electric cars.
Manufactured by a unit of the state-owned carmaker BAIC Group at a Beijing plant capable of producing up to 200,000 vehicles annually, the SU7 has received approval from authorities in a market where officials seek to regulate the influx of new players into the electric car segment.
Xiaomi’s entry into the electric vehicle market coincides with an escalating price war among EV manufacturers in China. Competitors like Tesla and BYD have engaged in aggressive pricing strategies, prompting adjustments to the cost of electric cars. Tesla, led by Elon Musk, has notably reduced prices in China by thousands of dollars in recent months.
Xiaomi’s announcement has already had a positive impact on its shares, which surged over 10% in Hong Kong. The successful entry into the electric vehicle market marks a significant milestone for Xiaomi as it expands its presence in the rapidly evolving automotive industry.
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