Xiaomi Enters Electric Vehicle Market by Launching the SU7

Chinese smartphone manufacturer Xiaomi has introduced its inaugural electric vehicle (EV).

During the unveiling event, Xiaomi's CEO Lei Jun disclosed that the standard SU7 model would be priced at 215,900 yuan ($29,872; £23,663), while the Max version would be available for 299,900 yuan.

The company reported receiving over 50,000 orders within the first 27 minutes of sales.

Xiaomi's venture into the electric car sector coincides with a slowdown in global sales growth, prompting a competitive pricing environment.

This move positions the tech giant in direct competition with EV rivals such as Tesla and BYD, with Tesla's Model 3 starting at 245,900 yuan in China.

Mr. Lei highlighted that the SU7 boasts a minimum range of 700km (435 miles), surpassing Tesla Model 3's 567km.

Xiaomi aims to leverage its shared operating system across various devices to appeal to existing customers.

Ranked as the third-largest smartphone seller globally with a market share of approximately 12%, Xiaomi has been teasing the SU7 since last year, drawing comparisons to Porsche's Taycan and Panamera sports car models.

Manufactured by a subsidiary of state-owned carmaker BAIC Group in Beijing, the SU7 will be produced at a plant capable of manufacturing up to 200,000 vehicles annually.

Bill Russo of Automobility highlighted Xiaomi's confidence in the relevance of its brand in China's EV market, contrasting it with Apple's recent decision to abandon its EV plans.

Xiaomi has committed to investing $10 billion in its vehicles business over the next decade.

As the Chinese EV market witnesses intensifying price competition, Xiaomi's entry into the sector presents a new contender amidst established players like Tesla and BYD.

Amidst these developments, governments globally are grappling with trade disputes and market regulations concerning EV imports, underscoring the complexities of the evolving automotive landscape.