Key Points:
- Xiaomi’s debut EV faces delivery delays of up to six months. The Xiaomi SU7 Max received nearly 89,000 pre-orders within 24 hours of opening.
- The EV, priced competitively, offers a range of 700km; Xiaomi aims to leverage its shared operating system to attract existing customers.
- A facility with a maximum of 200,000 vehicles per year substantial production capacity, owned by BAIC Group, manufactures Xiaomi EVs.
- Despite Xiaomi’s ambitious entry into the EV space, it faces challenges amid a global slowdown in EV sales and increasing competition.
With its debut model, Chinese smartphone maker Xiaomi recently entered the electric vehicle (EV) market. However, the company has revealed that eager buyers may face delivery delays of up to six months. After opening pre-orders for the Xiaomi SU7 Max EV, the company received overwhelming demand, with 88,898 pre-orders within 24 hours.
The Xiaomi SU7 Max, priced at 299,900 yuan ($29,872; £23,663), competes with rivals like Tesla’s Model 3 in China’s lucrative EV market. It boasts a minimum range of 700km (435 miles) and draws comparisons with luxury brands like Porsche.
Xiaomi’s EV venture is part of its strategy to diversify beyond smartphones and leverage its existing customer base. The company aims to capitalize on its shared operating system across devices to appeal to loyal customers.
A unit of state-owned car manufacturer BAIC Group in Beijing manufactures Xiaomi’s EVs. The plant can produce up to 200,000 vehicles annually. However, screen grabs circulating on Chinese social media show the firm warning buyers about a potential 27-week wait for delivery.
Despite Xiaomi’s ambitious entry into the EV space, it faces challenges amid a global slowdown in EV sales and increasing competition. Tesla, for instance, has reduced prices in China in response to local rivals slashing prices, while Apple reportedly shelved its plans to build an EV.
Furthermore, other Chinese EV manufacturers like BYD and Nio are also grappling with economic uncertainties and slowing growth, indicating a challenging landscape for newcomers like Xiaomi. Despite these challenges, Xiaomi remains committed to its EV venture, announcing a $10 billion investment in its vehicle business over the next decade.
