Xiaomi Unveils First EV to Challenge Tesla, BYD in China

Xiaomi, the Chinese tech giant, is set to enter the global automotive market with the official launch of its first electric vehicle, the SU7 sedan, on Mar. 28. This move follows Xiaomi's 2021 commitment to invest approximately US$10 billion over the next decade in its electric vehicle subsidiary.

The announcement, conveyed through Xiaomi's official Weibo account, the Chinese equivalent to X, unveiled plans for 59 stores across 29 Chinese cities to commence accepting orders for the SU7 on the launch day. Details regarding the pricing of the vehicle are expected to be revealed simultaneously.

Xiaomi had previously unveiled the SU7 in late December, with company co-founder and CEO Lei Jun highlighting its robust electric motor, claiming acceleration speeds surpassing those of Tesla and Porsche electric vehicles.

The SU7 will integrate Xiaomi's recently launched operating system, HyperOS, aligning it with the technology used in the company's mobile devices. Two variants of the sedan will be offered, boasting single-charge ranges of up to 668 kilometers and 800 kilometers, respectively.

Lei Jun acknowledged that the price of the SU7 might be relatively high but stressed that consumers would perceive it as justified. 

The competitive landscape in the electric vehicle market is fiercely competitive, with established brands like BYD and Tesla already engaged in what some executives describe as a "brutal" pricing war. Lei Jun assured stakeholders in a statement to the Securities Times that Xiaomi is "fully prepared in all aspects" to compete in this challenging environment.

Contrary to potential international expansion plans, William Lu, President, Xiaomi, clarified that the company's primary focus is on consolidating its presence in the Chinese market. Presently, two out of every five vehicles sold in China are electric, accounting for 60% of global electric vehicle sales. According to UBS estimates, by 2030, three out of every five new vehicles sold in China will be battery-powered rather than fueled by traditional sources.