Xiaomi begins sale of EV SU7

Beijing, March 29: Xiaomi Corp. is kicking off sales of its first electric vehicles (EVS) with aggressive pricing, betting the Chinese smartphone maker can succeed in a cutthroat market.

Co-founder Lei Jun presented his strategy in Beijing with the base SU7 model costing 215,900 yuan ($29,900) and prices stretching up to 299,900 yuan for the SU7 Max.

Xiaomi aims to begin mass deliveries by the end of April and is sweetening the deal for early orders with additional freebies like a built-in fridge.

These vehicles are the culmination of a multiyear undertaking with a $10 billion budget and lofty expectations. Xiaomi benchmarked itself against Tesla Inc.’s Model 3 in most respects and sought to match the electric Porsche Taycan with its top-performance edition, Lei said.

The pre-orders for the SU7 models topped 50,000 within 27 minutes of the launch, the EV maker said in a social media post. Xiaomi’s Us-traded ADRS surged 12 per cent after the event.

Lei’s announcement of the SU7 range and launch date triggered a surge in Xiaomi’s shares this month - even without the disclosure of pricing.

Investors cheered the diversification away from the stagnant smartphone business, but Xiaomi still has much to prove as it enters a wholly new product category.

Like Apple in the US, Xiaomi saw the opportunity to expand into EVS at a time that cars were adding more electronics and connectivity - though Apple cancelled its car project in Feb., while the Chinese firm is proceeding.

Turquoise-blue models of the new vehicles have been on display in Xiaomi stores across China this week.