Xiaomi’s EV launch shakes up China’s auto industry
Xiaomi’s marketing efforts have made a significant impact in the highly competitive EV market.The Xiaomi SU7 EV launch was such a resounding success that the entire 2024 inventory of the vehicle was sold out within 24 hours. According to InsideEVs,
The automaker is the latest company to capture market share in China alongside leaders like BYD and Tesla.
Xiaomi shares surged in Hong Kong on news of US market opening on Tuesday, ahead of Tesla It’s missing Q1 delivery guidance Deliveries declined by a wide margin and the first quarter since 2020.
Inside EV reports that within the first four minutes of its launch last Thursday, Xiaomi’s first car, the SU7, received 10,000 pre-orders in China, which grew to 50,000 in 27 minutes and nearly 90,000 by the end of the day. reached.
A surge in demand for the vehicle by a newcomer to the automotive industry means customers who put down a 5,000-yuan ($850) deposit may have to wait up to seven months, Reuters reported, citing delivery timelines from Xiaomi’s car app. Told what happened.
Deliveries are planned to begin by the end of the month, with deliveries for the SU7’s top-tier Max model, priced at 299,900 yuan ($41,500), estimated to be 27 to 30 weeks, with some deliveries stretching into next year. The Standard and Pro versions, priced at 215,900 yuan ($29,900) and 245,000 yuan ($33,990) respectively, are expected to take 18 to 21 weeks.
The SU7, equipped with in-house developed electric motors and available in rear-wheel or all-wheel drive, has an 800-volt system and batteries from CATL or BYD, providing a range of up to 515 miles (830 kilometers) . BAIC is set to manufacture the vehicle in Beijing, with an initial capacity of 150,000 vehicles annually, which will double in the second phase.
Priced at about $4,000 less than Tesla’s Model 3 in China, the SU7 has longer range, additional internal screens, a heads-up display, and a more advanced interior that is integrated with Xiaomi’s consumer electronics. Despite the availability of cheaper alternatives like the Zeeker 007, Xiaomi’s marketing has clearly made a significant impact in the highly competitive EV market.
We Just noted yesterday He was an EV vehicle manufacturer scrambling to encourage Not only to compete with Xiaomi’s launch, but also with leading Tesla and BYD. On April 1, Shanghai-based Nio unveiled an incentive plan of up to 1 billion yuan ($186.4 million) to encourage gasoline vehicle owners to switch, with perks such as battery swaps, additional driving function subscriptions and a Nio smartphone. Offered.
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At the same time, Xpeng reduced the prices of some vehicles by up to 20,000 yuan, and Chery Automobile introduced free purchases on selected models and improved trade-in values.
The heavy promotions contrast with Tesla’s strategy in China, which saw the automaker increase the price of its Model Y SUV, a move previously indicated to boost demand and sales ahead of the hike.
Recall that we wrote just a few days ago that Nissan is the latest manufacturer aiming to cut EV costs to keep up in an increasingly competitive and saturated landscape. The company now wants to compete with Chinese rivals by reducing costs by 30%. Financial Times reported last weekend.
Similarly, we have seen auto companies reducing investments in EVs, as is the case with US auto makers like Ford and GM. We wrote last month Joe Biden’s vision for EVs across the US is in “complete collapse”.