When Xiaomi announced its entry into the car making game in 2021, the only quality electric sedan available to Chinese consumers was basically the Tesla Model 3. But now, there is a long list of them.
(Image credit: Xiaomi EV)
Xiaomi (HKG:1810, OTCMKTS:XIACY) said it is fully prepared for the price war in China’s electric vehicle (EV) sector as its first model, the SU7, is set to hit the market on March 28. .
Securities Times today quoted the smartphone maker as saying that Xiaomi is fully prepared for the current competitive environment on all fronts in the EV industry.
Earlier today, Xiaomi announced that it will officially launch the SU7 electric sedan on March 28. The model made its debut on December 28 and pricing has not been announced yet.
Unlike Xiaomi, which started from scratch in the phone field, Xiaomi EV needs to build something more different, Securities Times quoted Xiaomi founder, chairman and CEO Lei Jun as saying.
Lei said, the most important thing for Xiaomi EV is actually smart technology that meets people’s real expectations of Xiaomi and new energy vehicles (NEVs).
Xiaomi officially announced its entry into car-manufacturing on March 30, 2021, at a time when Chinese consumers did not have many excellent EV models to choose from.
In the EV sedan segment, the only mid-to-high-end model available in China in 2021 was essentially the Tesla (NASDAQ: TSLA) Model 3.
However, there are already several excellent models in this segment, such as the Shenlan SL03, whose deliveries begin in August 2022, the Nio (NYSE: NIO) ET5, whose deliveries begin in late September 2022, and the Zeeker 007, whose Deliveries started from January 1 this year.
Other models include BYD Han EV,
In addition to the increasing number of competing models, the price war continues in China’s EV market, with a large number of new models offering lower prices with better features.
Geely Auto Group launched the Galaxy E8, the first all-electric sedan in its Galaxy lineup, on January 5, a model that is the same size as the Xiaomi SU7 but starts at only RMB 175,800 ($24,500).
The regular version of the Galaxy E8 is based on a 400 V platform, and the top-of-the-line version is based on a high-voltage 800 V platform. It measures 5,010 mm in length, 1,920 mm in width and 1,465 mm in height, with a wheelbase of 2,925 mm.
For comparison, the Xiaomi SU7 measures 4,997 mm in length, 1,963 mm in width and 1,440/1,455 mm in height and has a wheelbase of 3,000 mm.
Xiaomi did not mention whether the SU7 is based on the 800 V platform across the board. Higher voltage leads to better energy performance and faster charging, but parts cost more.
Regarding the price of Xiaomi SU7, Lei said in an interview with CCTV on January 22 that the price will not be RMB 99,000 or RMB 199,000, and may actually be a little expensive.
Local media outlet Jimian reported on January 30, citing an unnamed source at a major insurance company, that the top-trim version of the SU7 would cost the vehicle RMB 361,400 at the time of insurance purchase.
Jimian’s report says that this means the Xiaomi SU7 will have a starting price between RMB 250,000 and RMB 370,000.
In addition, the Securities Times in today’s report quoted Lu Weibing, chairman of Xiaomi Group, as saying that there is no timeline for the overseas sales of Xiaomi EV.
Lu said Xiaomi wants Xiaomi EV to strengthen its technology in the domestic market first, so as to reduce unnecessary losses in overseas markets.
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Morgan Stanley says Xiaomi EV is likely to be disruptive.