China’s Xiaomi Launches Its First Electric Vehicle To Take On Tesla

Xiaomi, a major electronics company in China, joins the EV race by launching its first electric vehicle Speed Ultra 7 (SU7) in Beijing.

Lei Jun, the founder and CEO of the renowned Chinese smartphone brand, articulated his vision for the vehicle, expressing his desire for it to embody the epitome of aesthetics, user-friendliness, and intelligence. Lei Jun emphasized that the vehicle will be unparalleled in terms of appearance, driving experience, and technological sophistication. Moreover, he specified that the vehicle should be competitively priced, aiming for a tag below $69,180. He expressed his desire to build a dream car similar to Porsche and Tesla.

Yet, the company’s ambitious venture into the automotive sector arrives amidst a fiercely competitive landscape in China’s auto industry. As the world’s largest electric vehicle (EV) market, sustained by significant state subsidies over the past decade, it has become densely populated with contenders.

With over 200 prominent manufacturers now actively producing pure EVs and plug-in hybrids, the market has grown saturated. Last year, a price war erupted among companies striving to bolster sales amid dwindling consumer demand.

According to Lei, Xiaomi’s SU7 has been showcased in showrooms across 29 cities in mainland China since Monday.

Xiaomi, renowned for its smartphones and consumer electronics, secured a notable 13% share in both global and Chinese smartphone sales in the final quarter of 2023, as per Counterpoint Research data. In the overall rankings for 2023, it clinched the fifth position in China.

With its strategic pricing below $69,180, Xiaomi seems to be honing in on attracting premium consumers within a fiercely competitive market. This pricing places it notably below the imported Porsche Taycan, which commences at $124,248. Additionally, Xiaomi’s offering presents a formidable challenge to Tesla’s Model S sedan, priced starting at $96,700.