Chinese consumer electronics company Xiaomi on Thursday, December 28, 2023, unveiled its long-awaited electric car, but declined to share its price or specific release date.
CNBC | Evelyn Cheng
Tesla’s Model 3 starts at 245,900 yuan in China.
Lei claims that the standard version of the SU7 beats the Model 3 in more than 90% of its specifications, except for two aspects where he says it could take Xiaomi at least three to five years to catch up with Tesla.
Deliveries should begin by the end of April, he said. Lei also claims that Xiaomi’s car factory, for which all “key” steps are fully automated, can produce the SU7 every 76 seconds. It is not yet clear whether the factory is fully operational.
Earlier this week, Xiaomi’s CEO said on social media that the SU7 will be the ultimate sedan “under 500,000 yuan” ($69,328).
The car is entering a highly competitive market in China, where companies are launching multiple new models and slashing prices to survive. Chinese telecommunications giant Huawei has partnered with traditional automakers, most notably launching the Aito brand, whose cars are often displayed in Huawei smartphone showrooms.
Tesla’s Model 3 is China’s best-selling new energy sedan, which has a range of at least 600 kilometers (372 miles) and costs less than 500,000 yuan, according to data from industry website Autohome.
BYD’s Han sedan starts at 169,800 yuan, according to Autohome.
Nio’s ET5 starts at 298,000 yuan, while Xpeng’s P7 starts at 209,900 yuan, the data showed. The Geely-owned Zeekr 007 sedan starts at 209,900 yuan, according to Autohome.
Sales of new energy vehicles, which include cars powered only by batteries, have grown in China and account for about a third of new passenger cars sold, according to the China Passenger Car Association.
The heads of rival electric car startups Nio, Xpeng and Li Auto were among the select guests at the Xiaomi SU7 launch event.
Lei on Thursday showed off a range of accessories such as a car fridge, a custom windscreen sunshade and a smartphone holder, some available for free with a car purchase before the end of April and others at a separate price.
The SU7 supports Apple’s Car Play and can integrate with the iPad, Ley said. It also revealed driver assistance technology for highways and cities that will be fully available in China in August.
Tesla’s Autopilot to assist drivers on highways is available in China, but the company’s “Full Self-Driving” for city streets has not yet been released in the country.
Although he said Xiaomi wants to compete with Porsche at an automotive technology event in December, Lei admitted that the SU7 needs more time before it can compete at that higher level. It announced that the “Max” version of the SU7, aimed as a competitor to Porsche’s Taycan, will sell for 299,900 yuan.
The SU7 is part of Xiaomi’s recently launched “Human x Car x Home” strategy, which seeks to build an ecosystem of devices connected to the new HyperOS operating system. Most of the company’s revenue comes from phones, with just under 30% coming from appliances and other consumer products.
Although Xiaomi is generally known for more affordable products, its president Lu Weibing told CNBC earlier this year that the company has been pursuing a premium strategy since 2020 — and that there are about 20 million users in this price segment who they could buy SU7.
Lu told CNBC that the SU7 will first be sold to consumers in China and that it will take at least two to three years to roll out overseas.
The company showed the car at the Mobile World Congress in Barcelona in late February, after revealing the car’s exterior and technology in Beijing in late December.