Xiaomi, a prominent Chinese smartphone company, has recently made a significant impact in the electric vehicle market with its new electric SU7 sedan. The company, led by CEO Lei Jun, announced that they have already received over 70,000 orders for the new EV as of April 20, exceeding expectations and bringing them closer to breaking even. This success is particularly impressive considering that the SU7 is priced approximately $4,000 lower than Tesla’s Model 3, a formidable competitor in the electric vehicle space.
Originally aiming to deliver 100,000 units of the electric sedan this year, Xiaomi is now on track to achieve that goal as demand continues to soar. Analysts from Citi have revised their forecasts, anticipating a higher profit margin in the autos segment this year. They project Xiaomi to ship 100,000 cars in 2021, followed by 200,000 units next year and 280,000 units in 2026. This positive projection signals a promising future for Xiaomi’s foray into the automotive industry.
While Xiaomi’s sales figures are impressive, they still lag behind industry giants like Tesla, which sold over 600,000 cars in China last year. Additionally, companies like Li Auto and Nio have also made their mark in the electric vehicle market, with Li Auto reporting a gross margin of 23.5% in the fourth quarter of last year. Nio, on the other hand, saw a gross margin of 7.5%, indicating a competitive landscape in the industry.
Despite its success in the domestic market, Xiaomi has long-term ambitions of becoming one of the top five automakers globally. CEO Lei Jun emphasized the company’s strong global presence and loyal customer base, hinting at a potential expansion into the international market in the future. Xiaomi’s investment in its electric car venture has been substantial, reflecting its commitment to establishing a strong foothold in the automotive industry.
Looking ahead, Xiaomi has already set its sights on its next electric vehicle, an SUV scheduled for release in the second half of 2025. This strategic move demonstrates Xiaomi’s dedication to innovation and diversification within the electric vehicle segment. CEO Lei Jun remained tight-lipped about specifics regarding the upcoming SUV, citing the success of the SU7 launch which was shrouded in secrecy.
Xiaomi’s entrance into the electric vehicle market has disrupted the status quo and positioned the company as a formidable player in the industry. With a focus on innovation, strategic expansion plans, and a commitment to quality and affordability, Xiaomi’s electric vehicles are poised to reshape the automotive landscape in the coming years.