China’s Xiaomi will value SU7, its Tesla EV rival underneath $69,400: CEO

Xiaomi’s first EV, the SU7, is on show at a Xiaomi Car supply heart on March 25, 2024 in Hefei, Anhui Province of China. Chinese language tech corporate Xiaomi’s first electrical car, the SU7, might be officially introduced on March 28. 

Ruan Xuefeng | Visible China Team | Getty Photographs

Xiaomi CEO Lei Jun on Monday teased the cost of the Chinese language company’s first electrical car forward of its reliable establishing this era.

“The goal of the Xiaomi SU7 is to be the best looking, best driving, and most intelligent sedan under 500,000 yuan ($69,328),” Lei stated in a post on Chinese social media service Weibo.

It’s the first while Xiaomi has showed the higher finish of the associated fee length. On Thursday, Xiaomi will formally establishing the SU7 electrical car and start taking orders.

The auto is on show throughout Xiaomi shops in China in 29 towns, in step with any other Weibo submit by means of Lei. He stated that take a look at drives will start on Thursday.

Xiaomi Team President Weibing Lu advised CNBC prior to now that the corporate is concentrated on the top rate branch of the electrical automotive marketplace.

That will pit it in opposition to the likes of Tesla in China. For comparability, Tesla’s Fashion S sedan begins at 698,900 yuan hour the Fashion 3 begins at 245,900 yuan.

Xiaomi can be competing in opposition to a slew of home gamers together with vast BYD, Nio, Xpeng and Li Auto, a lot of which might be additionally concentrated on the top rate finish of the EV marketplace.

Xiaomi is best-known as a smartphone and client electronics corporate. However in 2021, the corporate introduced plans to go into the EV race. 3 years then it’s dealing with an overly other electrical automotive marketplace in China — one this is probably dealing with a slowdown and the place festival is cut-throat.

The EV marketplace is in the course of a price battle which used to be sparked by means of Tesla on the finish of 2022. This has compelled alternative electrical automotive corporations to slash costs to bring to stoke call for and keep aggressive, which has confused margins and profitability around the business.

Pricing might be key for Xiaomi in this kind of aggressive marketplace and one the place the corporate has disagree prior historical past. The obese guess on EVs from Xiaomi isn’t misplaced on CEO Lei.

“Three years ago, I announced that Xiaomi was going to enter the EV market. This is my final new venture — I am putting my reputation on the line to fight for a vision I deeply believed in,” Lei stated in a submit on X.

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