As pricing wars flare up in China’s intensely competitive electric vehicle sector, Chinese smartphone maker Xiaomi said on Thursday that it will offer its first automobile for significantly cheaper than Tesla’s Model 3. Xiaomi CEO Lei Jun said that the country’s retail pricing for the SU7 basic version would be 215,900 yuan ($30,408). He recognized that this would imply the firm would be losing money on each vehicle sold. In China, Tesla’s Model 3 is priced at 245,900 yuan ($34,057.22).
Xiaomi SU7 Claims Top Performance, Orders Surge Past 50,000
Lei asserted that the SU7 standard model outperformed the Model 3 in over 90% of its specs, except two areas where he predicted it would take Xiaomi at least three to five years to overtake Tesla. In addition, he stated that the Model 3’s minimum driving range was 606 kilometers, while the SU7’s was 700 kilometers, or around 435 miles. Sales began at 10 p.m. Beijing time on Thursday, and the business reported that in the 27 minutes since then, orders have topped 50,000 automobiles.
According to Lei, deliveries should begin before the end of April. Lei also stated that one SU7 can be produced in Xiaomi’s auto plant every 76 seconds, with all critical processes completely automated. It was unclear at first if the facility was running at full capacity. The CEO of Xiaomi stated on social media earlier this week that the SU7 will be the greatest sedan for less than 500,000 yuan ($69,328).
China’s Electric Vehicle Market Heats: Price Wars, New Models, and Domestic Brands Rise
The automobile is going into a very competitive market in China, where businesses are having to lower their prices and introduce a lot of new models in order to stay in business. The massive Chinese telecom company Huawei has formed partnerships with conventional manufacturers; one such partnership was the introduction of the Aito brand, whose cars are frequently on exhibit at Huawei smartphone dealerships. Based on statistics from the industry website Autohome, the most popular new energy sedan in China is the Tesla Model 3, which costs less than 500,000 yuan and has a driving range of at least 600 kilometers (372 miles). Autohome states that the starting price of BYD’s Han sedan is 169,800 yuan.
According to the statistics, the starting price of Xpeng’s P7 is 209,900 yuan, while that of Nio’s ET5 is 298,000. As per Autohome, the starting price of Zeekr’s 007 sedan, which is owned by Geely, is 209,900 yuan. According to the China Passenger Car Association, the proportion of newly sold passenger cars in China that are new energy vehicles which include battery-only powered cars has increased significantly and now makes up around one-third.
What is new in the car?
The SU7 is a component of Xiaomi’s newly unveiled “Human x Car x Home” strategy, which aims to create a network of gadgets linked to the company’s new HyperOS operating system. Less than 30% of the company’s income comes from appliances and other consumer goods, with phones accounting for the majority of sales. According to Lei, the SU7 can interface with the iPad and supports Apple’s Car Play. Additionally, he said that driver-assist technology for cities and highways will be completely accessible in China in August.
A variety of accessories including an in-vehicle refrigerator, a personalized front-window shade, and a smartphone holder, were displayed by Lei on Thursday. Some of the additions are free when a car is purchased before the end of April, while others have a fee.
