Xiaomi set to enter EV market in China

Chinese technology firm Xiaomi says it will begin delivering its first electric vehicle (EV) this month – its first-ever incursion into the competitive automotive enterprise.

Xiaomi, China’s fifth-largest smartphone maker, is gearing up to unveil its first electric vehicle (EV) on 28th March, intensifying competition in the world’s largest car market. 

The company has announced that it has established 59 stores across 29 cities in China to facilitate orders for its upcoming car.

Entering the EV Market

With the unveiling of its electric vehicle, Xiaomi aims to compete with established players like BYD and Tesla in China’s increasingly competitive EV market. Last year, Xiaomi’s CEO Lei Jun expressed ambitions for the company to become one of the top five car manufacturers globally.

Investment and Technology

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Xiaomi plans to invest $10 billion over the next decade in its vehicle business. 

The upcoming car, known as the Speed Ultra 7 (SU7), boasts advanced “super electric motor” technology capable of outperforming some Tesla and Porsche EVs in acceleration. 

Additionally, Xiaomi hopes to leverage its ecosystem by integrating the car’s operating system with its smartphones and other devices, appealing to its existing customer base.

Production and Approval

The SU7 will be manufactured by a subsidiary of the state-owned BAIC Group at a plant in Beijing with an annual production capacity of up to 200,000 vehicles. 

Xiaomi’s entry into the EV market comes amid efforts by Chinese authorities to regulate the influx of new players. 

The approval from authorities positions Xiaomi as one of the few new entrants authorized to operate in China’s electric car sector.

Intensifying Price War

The launch of Xiaomi’s electric vehicle coincides with an escalating price war in China’s EV market. 

Tesla, led by Elon Musk, has reduced the prices of its cars in response to aggressive pricing strategies by local competitors like BYD. Xiaomi’s announcement has already had a significant impact on its stock, with shares surging more than 10% in Hong Kong.

As Xiaomi prepares to venture into the electric vehicle segment, its innovative technology, strategic investments, and brand recognition could disrupt the competitive landscape, offering consumers more options in China’s rapidly evolving automotive industry.