Xiaomi's first electric car, the SU7, will be on display at the Xiaomi Automotive Delivery Center on March 25, 2024 in Hefei, Anhui Province, China. Chinese tech company Xiaomi's first electric car, the SU7, will be officially launched on March 28
Ruan Xiufeng | China Optical Group | Getty Images
Xiaomi CEO Lei Jun on Monday raised the price of the Chinese company's first electric car ahead of its official launch this week.
“The goal of the Xiaomi SU7 is to be the best-looking, best-driving and most intelligent sedan under 500,000 yuan ($69,328),” Li said in a post on Chinese social media service Weibo.
This is the first time that Xiaomi has confirmed the upper limit of the price range. On Thursday, Xiaomi will officially launch the SU7 electric car and start taking orders.
The car is being offered in Xiaomi stores in China in 29 cities, according to another Weibo post by Lei. He said that driving tests would begin on Thursday.
Xiaomi Group President Weibing Lu previously told CNBC that the company is targeting the premium segment of the electric vehicle market.
This would put it up against the likes of Tesla In China. For comparison, the Tesla Model S sedan starts at 698,900 yuan while the Model 3 starts at 245,900 yuan.
Xiaomi will also be competing against a slew of local players including giants BYD, Nio, Xpeng and Li Auto, many of which are also targeting the premium end of the electric vehicle market.
Xiaomi is best known as a smartphone and consumer electronics company. But in 2021, the company announced plans to enter the electric car race. Three years later, it faces a very different electric vehicle market in China – one that is likely to face a slowdown and where competition is intense.
The electric vehicle market is in the midst of a price war sparked by Tesla at the end of 2022. This has forced other electric vehicle companies to lower prices in order to increase demand and remain competitive, putting pressure on margins and profitability across the industry. .
Pricing will be key for Xiaomi in such a competitive market in which the company has no previous history. Xiaomi's big bet on electric cars was not lost on CEO Lei.
“Three years ago, I announced that Xiaomi would enter the electric vehicle market. This is my latest new project – I'm putting my reputation on the line to fight for a vision I strongly believe in,” Li said in a post. On X.
