Chinese smartphone company Xiaomi is getting ready to release its first electric car, called the Speed Ultra 7 (SU7), and it will be available for orders soon. The CEO, Lei Jun, mentioned that the price will be below 500,000 yuan, which is around $69,186.
This move puts Xiaomi in direct competition with companies like Tesla and BYD in the electric vehicle market. Xiaomi hopes to attract its existing customers by offering a car that shares the same operating system as its phones, laptops, and other devices.
Xiaomi is a major player in the smartphone market, holding about 12% of the global market share. The SU7 has been compared to sports car models like Porsche’s Taycan and Panamera.
The car will be manufactured by a branch of the state-owned company BAIC Group in Beijing. Xiaomi plans to invest $10 billion in its vehicles business over the next decade.
China has a strong electric vehicle market with a stable ecosystem, including a robust battery supply chain and a growing charging network.
Competition in China’s electric vehicle market is fierce, with companies like Tesla and BYD cutting prices to attract customers. Despite this, Xiaomi has gained approval to enter the market.
While some electric car companies in China are facing challenges due to economic slowdowns, Xiaomi is confident in its prospects.
On the global stage, there are disputes over subsidies for electric vehicles. Beijing has initiated proceedings against the US at the World Trade Organization, and the EU is investigating whether Chinese subsidies have helped electric car makers undercut European competitors.