Xiaomi surprises with low pricing for first electric car
Cheers welcome smartphone giant’s release of SU7 as it seeks to take on Tesla’s Model 3
Smartphone giant Xiaomi yesterday launched its muchawaited first electric vehicle – the SU7, short for Speed Ultra – in Beijing at a starting price of 215,900 yuan (HK$237,000) to take on Tesla’s Model 3 in the world’s largest electric-car market.
The high-end SU7 Pro costs 245,900 yuan while the SU7 Max, the most powerful vehicle in the series, was priced at 299,900 yuan.
Pre-orders had begun and included 5,000 “Founders” versions of the SU7 and SU7 Max, said Lei Jun, Xiaomi’s founder, chairman and chief executive.
Lei spent about 90 minutes detailing the cars’ internal and external design, smart cockpit and autonomous driving capabilities before revealing the prices.
“We have benchmarked our car with [Tesla’s] Model 3,” he said to a cheering audience in Beijing’s southern hi-tech economic development zone.
Lei said the SU7, with a 700km battery life, was priced lower than the Model 3, but added 90 per cent of its specifications surpassed the Tesla vehicle.
He hinted that “consumers will make their choices”.
Analysts had forecast the Xiaomi cars would cost between 200,000 yuan and 370,000 yuan.
“The car is priced below market expectations since analysts had forecast the SU7 would start at 250,000 yuan,” said Phate Zhang, founder of Shanghaibased electric-vehicle data provider CnEVPost.
“The attractive prices will help Xiaomi draw a huge number of buyers and force some of its competitors to offer discounts to stay competitive.”
Chinese electric-vehicle tycoons including He Xiaopeng of Xpeng Motors, William Li Bin of Nio, and Li Xiang of Li Auto were at the event.
Lei said their advice in the past three years helped Xiaomi avoid many missteps in its first electriccar venture.
Before the launch, Lei said in a post on microblogging platform Weibo the SU7 was “the bestlooking and smartest car with the best driving experience” in the domestic market segment of electric cars that cost under 500,000 yuan.
The SU7 launch, which Lei has described as his final major endeavour, marks the culmination of Xiaomi’s three-year effort to diversify its revenue stream beyond smartphones and consumer electronics devices.
Attractive prices will help Xiaomi draw ... buyers and force ... competitors to offer discounts
PHATE ZHANG, CNEVPOST
The Beijing-based firm has pledged to invest US$10 billion over a decade in its car business.
Lei said it was his dream to develop an electric vehicle for mainland consumers that would be on a par with those from Tesla and Porsche.
Equipped with a smart driving system and a digital cockpit, the SU7 has been displayed across the country. Starting today, potential buyers can reserve a test drive at Xiaomi Auto retail stores in 29 cities across the country.
However, not everyone is convinced Xiaomi will have a smooth ride amid the domestic car industry’s extended price war and a shaky post-pandemic economic recovery.