Gabriel Walker
Mar 13, 2024
Xiaomi, the Beijing-based tech powerhouse known for its range of consumer electronics, is gearing up to make its mark in the electric vehicle (EV) market, posing a new challenge to Tesla in China. The company is set to start deliveries of its first EV, the sporty Speed Ultra 7 (SU7), on March 28, stepping into a sector where Tesla has been a dominant player.
The SU7, unveiled by Xiaomi last year, is not just a venture into the automotive space but also a statement of capability, boasting acceleration rates that rival some models from Tesla and Porsche. It offers an impressive range of up to 497 miles (800 kilometres) and features advanced driver-assist systems along with a modern digital cockpit. Prospective buyers can already get a glimpse of the vehicle across various showrooms in China.
While Xiaomi hasn't officially disclosed the SU7's price, it's anticipated to be competitive, potentially ranging between 250,000 yuan (about $34,800) and 370,000 yuan ($51,500). This pricing strategy places it in direct competition with Tesla’s Shanghai-made Model 3.
Tesla, on its part, has been adjusting prices in the Chinese market to stay competitive, especially with local manufacturers like BYD making significant inroads with their affordable EVs. BYD's expansion in both domestic and international markets underscores the increasing competitiveness in the EV sector.
Xiaomi’s ambition in the automotive industry is evident in its commitment to invest $10 billion over the next decade. The company also eyes global expansion, possibly introducing the SU7 to international markets in the coming years. Xiaomi's long-term vision includes becoming one of the top five global automakers within the next 15 to 20 years.
