Xiaomi Unveils Electric Car SU7, Takes Aim at Tesla in Crowded EV Market

Xiaomi, the renowned Chinese smartphone brand, has officially entered the electric vehicle (EV) market with the launch of its highly anticipated electric car, the Speed Ultra 7 (SU7) sedan, during a grand event in Beijing on Thursday night.

The founder and CEO of Xiaomi, Lei Jun, revealed that the SU7 sedan will be priced between 215,900 yuan ($29,874) and 299,900 yuan ($41,497) in China. Positioned competitively, the starting price of the SU7 is approximately $4,000 lower than Tesla’s Model 3 sedan, which begins at 245,900 yuan in China.

Lei Jun expressed Xiaomi’s ambition to create a “dream car” that rivals top manufacturers like Porsche and Tesla in terms of design, driving experience, and innovation. The company aims to target premium consumers with the SU7 while maintaining competitive pricing against foreign rivals.

Notably, Xiaomi’s entry into the EV market comes amidst intense competition in China’s automotive industry, with over 200 major manufacturers producing pure EVs and plug-in hybrids. Despite the price war and challenges posed by weaker consumer demand, Xiaomi’s SU7 garnered significant attention, with over 50,000 units ordered within 27 minutes of sales commencement.

The SU7 boasts a starting range of 700 kilometres (435 miles), surpassing the long-range version of Tesla’s Model 3, according to Lei Jun. The launch event attracted prominent figures from the Chinese EV sector, including founders and CEOs of XPeng Motor, Nio, and Li Auto, highlighting the industry’s recognition of Xiaomi’s foray into electric vehicles.

Xiaomi’s venture into smart EVs aligns with its broader strategy of diversification beyond smartphones and consumer electronics. With its significant presence in the smartphone market, accounting for 13% of global and Chinese sales in the last quarter of 2023, Xiaomi aims to leverage its expertise and resources to establish a foothold in the rapidly evolving EV landscape.

The SU7 has been showcased in showrooms across 29 cities in mainland China since Monday, underscoring Xiaomi’s commitment to its automotive ambitions. In 2021, the company announced a substantial $10 billion investment over the next decade into a subsidiary focused on smart EVs, signaling its long-term commitment to the EV market.