Xiaomi’s CEO, Lei Jun, shared exciting news on Thursday about the company’s electric car. He said that sales have been three to five times higher than they expected. Lei Jun made these remarks during a live video on Douyin, similar to TikTok, which attracted over 34 million viewers.
Last month, Xiaomi launched its electric car, named SU7, which takes design inspiration from Porsche. Despite entering a competitive market in China, Xiaomi’s car stands out with its affordable price tag – under $30,000 for the base model. This is $4,000 cheaper than Tesla’s Model 3 base model in China. Although Xiaomi expects to lose money on the SU7, it has shown confidence in the project.
Initially, Xiaomi started delivering a limited batch of 5,000 cars, known as the “Founder’s Edition,” on April 3. These cars came with extra accessories for early buyers. However, on Thursday, Xiaomi began delivering the standard version of the SU7 in Beijing and Shenzhen, 12 days earlier than planned.
Lei Jun emphasized the importance of regular software updates, aiming for improvements at least once a month. Xiaomi plans to focus mainly on the SU7 and has no immediate plans to develop off-road vehicles.
Aside from the Standard version, Xiaomi intends to start delivering Max models this month and Pro models by the end of May. Although Lei Jun didn’t directly address inquiries about a sports utility vehicle (SUV), he received praise from Wei Jianjun, CEO of Great Wall Motor, for Xiaomi’s achievement in producing the car within three years.
The arrival of Xiaomi’s electric car has shaken up the Chinese market. Other Chinese electric vehicle brands with similar models have announced price reductions and subsidies following Xiaomi’s launch.
Despite challenges in the competitive auto market, analysts believe Xiaomi has an advantage due to its strong financial position and expertise in smartphones. They anticipate significant losses for the SU7, estimating a net loss of 4.1 billion yuan based on projected sales of 60,000 units this year.
