Chinese smartphone giant Xiaomi is gearing up to start deliveries of its first electric vehicle (EV), likely intensifying competition in the sector.
Xiaomi Group president Lu Weibing announced that deliveries of the Xiaomi SU7 will begin “very soon,” with domestic deliveries potentially starting as early as the second quarter, CNBC reported on February 26.
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The Xiaomi SU7 was showcased at the Mobile World Congress in Barcelona, marking its first international appearance. Lu revealed the delivery plans in an interview with CNBC ahead of the event.
Xiaomi officially announced its foray into car manufacturing on March 30, 2021, and unveiled the SU7 on December 28, 2023. Pricing for the model has not been disclosed, and an official launch date is yet to be set.
“We think it’s a good starting point for us in the premium segment because we have already 20 million premium users in China based on the smartphone,” Lu stated in the CNBC interview.
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“I think the initial purchases will be very overlapped with the smartphone users,” he added.
Xiaomi, known for its affordable products, faces challenges entering a market where established EV giants like BYD (HKG: 1211, OTCMKTS: BYDDY) are significantly reducing prices, the CNBC report highlighted. BYD recently started updating its models post-China’s Lunar New Year holiday, slashing prices significantly.
The SU7, Xiaomi’s first EV model, will target the mid- to high-end market. The premium trim of the SU7 costs RMB 361,400 ($50,210) for the vehicle at the time of insurance purchase, according to a January 30 report by local media outlet Jiemian, citing an unnamed source at a major insurance company.
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The starting price for the Xiaomi SU7 is estimated to be between RMB 250,000 and RMB 370,000, according to market speculation cited by Jiemian’s report.
Production of the Xiaomi SU7 is set to ramp up, with Xiaomi’s car-making arm, Xiaomi EV, planning to produce around 2,000 units in March and reach full capacity by mid-2024, with production expected to exceed 10,000 units in July, as reported by local media outlet 36kr on January 31, citing several industry sources.
