Xiaomi Unveils New Electric Car, the SU7 Sedan, in Beijing
Hong Kong (CNN) – Xiaomi has officially revealed its highly anticipated electric car, the new Speed Ultra 7 (SU7) sedan, in Beijing on Thursday night. The founder and CEO of the popular Chinese smartphone brand, Lei Jun, teased the launch earlier in the week, stating that he wanted the company’s first electric vehicle to be the “prettiest, easiest to drive, and smartest car” with a price tag of less than 500,000 yuan (US$69,180).
Lei Jun expressed his ambition for Xiaomi to build a “dream car” comparable to Porsche and Tesla, emphasizing the need to learn from the best in the industry. Xiaomi announced that prices for the SU7 models would range between 215,900 yuan (US$29,874) and 299,900 yuan (US$41,497).
The unveiling of Xiaomi’s electric car comes at a time of fierce competition in the Chinese automotive sector, with over 200 major manufacturers producing electric vehicles and plug-in hybrids. A price war ensued last year as companies sought to boost sales amidst lower consumer demand, resulting in a drop in average profit margins to just 5% in 2023.
Xiaomi’s SU7 has been displayed in 29 cities across mainland China since Monday, showcasing the company’s foray into the automotive market. Previously known for its smartphones and consumer electronics, Xiaomi accounted for 13% of global and Chinese smartphone sales in the final quarter of 2023, ranking fifth in China for the entire year.
In 2021, Xiaomi announced a US$10 billion investment over the next decade in a subsidiary dedicated to smart electric vehicles. The standard version of the SU7 boasts a starting range of 700 kilometers, positioning it as a competitor in the premium electric car market alongside brands like Porsche and Tesla.
With a more affordable price point compared to imported luxury electric vehicles, Xiaomi’s SU7 aims to capture the attention of premium consumers in China. The competitive pricing strategy aligns with the country’s lower electric vehicle prices relative to the global market, further propelling Xiaomi’s entry into the electric car industry.