Xiaomi Ventures into Electric Vehicle Market, Set to Roll Out First EV Deliveries This Month

Chinese technology titan Xiaomi is poised to enter the electric vehicle (EV) arena, marking its debut in the fiercely competitive automotive industry with the imminent delivery of its inaugural electric car. Scheduled to commence deliveries this month, Xiaomi’s electric vehicle launch heralds a significant milestone for the company’s diversification strategy.

The pricing details of the EV, slated for announcement on March 28, have heightened anticipation among consumers. With 59 stores spanning 29 cities nationwide, Xiaomi has strategically positioned itself to cater to the burgeoning demand for electric vehicles across China, the world’s largest car market.

The unveiling of the Speed Ultra 7 (SU7) last year underscored Xiaomi’s ambitious vision, as CEO Lei Jun articulated the company’s aspiration to ascend to the ranks of the top five global automakers. Xiaomi’s substantial investment commitment of $10 billion over the next decade underscores its long-term commitment to the burgeoning electric vehicle sector.

Boasting cutting-edge “super electric motor” technology, the SU7 promises unparalleled acceleration capabilities, rivalling established players like Tesla and Porsche in the EV domain. Xiaomi’s integration of its car’s operating system with its smartphones and other smart devices aims to leverage its existing customer base, offering a seamless ecosystem experience.

Amid regulatory efforts to streamline the influx of new entrants into China’s electric vehicle market, Xiaomi’s foray has received official approval, positioning it as a formidable contender in the EV landscape. The manufacturing of the SU7 will be overseen by a subsidiary of state-owned automotive giant BAIC Group, leveraging a Beijing-based facility with an annual production capacity of up to 200,000 vehicles.

Xiaomi’s venture into electric vehicles comes amidst an escalating price war in China’s EV sector, with industry stalwarts like Tesla and domestic rivals engaging in aggressive pricing strategies to capture market share. The news of Xiaomi’s entry into the EV market has resonated positively with investors, reflected in a surge of over 10% in Xiaomi’s shares on the Hong Kong stock exchange following the announcement.