Xiaomi's SU7: A Game-Changer in China's Electric Vehicle Arena

Xiaomi, a prominent Chinese smartphone manufacturer, announced on Thursday (March 28th) its foray into the electric vehicle market with the introduction of its inaugural car, the SU7.

Priced significantly lower than Tesla's Model 3, the move underscores the intensifying price competition within China's electric vehicle sector.

Lei Jun, CEO of Xiaomi, revealed that the standard edition of the SU7 will retail at 215,900 yuan ($30,408), a price point acknowledged to incur losses for the company per unit.

In comparison, Tesla's Model 3 begins at 245,900 yuan in China.

Jun emphasized that despite the lower price, the SU7 surpasses the Model 3 in over 90% of specifications, boasting a minimum driving range of 700 kilometers, surpassing the Model 3's 606 kilometers.

Orders for the SU7 surged, surpassing 50,000 within just 27 minutes of its launch at 10 p.m. Beijing time on March 28th.

Deliveries are slated to commence by the end of April. Jun also highlighted Xiaomi's highly automated car factory, capable of producing an SU7 every 76 seconds, although its operational status remains unclear.

Xiaomi's entry into the electric vehicle market comes amid fierce competition in China, with companies introducing a plethora of new models and slashing prices to remain competitive.

The Chinese electric vehicle market features a range of offerings, including Tesla's Model 3, BYD's Han sedan starting at 169,800 yuan, Nio's ET5 priced from 298,000 yuan, Xpeng's P7 beginning at 209,900 yuan, and Zeekr's 007 sedan, a Geely-owned brand, also starting at 209,900 yuan.

As companies vie for market share, the landscape is poised for further disruption amidst pricing battles and technological advancements.

Source: Evelyn Cheng / CNBC