Xiaomi declares initial victory in EV foray, with over 70,000 orders for SU7 sedan in first month

Xiaomi’s founder and CEO Lei Jun said on Tuesday that the SU7 has proved popular and is quickly moving towards its sales target of 100,000 units this year
Retail sales of new energy vehicles in China totaled 1.76 million units in the first quarter, down 31 per cent from the December quarter but up 34 per cent year on year

Xiaomi

Che Panin Beijing

Published: 7:00pm, 23 Apr 2024

Why you can trust SCMP

Chinese smartphone brand Xiaomi has declared initial victory in its foray into the country’s crowded electric vehicle (EV) market, claiming more than 70,000 locked-in orders for its SU7 sedan in the first month after the model’s official launch.

Amid a brutal price war among China’s EV players, Xiaomi’s founder and CEO Lei Jun said on Tuesday that the SU7 - short for Speed Ultra - has proved popular and is quickly moving towards its sales target of 100,000 units this year.

Lei said last week that current demand was about three to five times higher than expected, after the Chinese smartphone maker debuted its first EV in Beijing last month.

Tesla in chaos as CEO Musk prioritises next-generation robotaxi

Xiaomi’s move intensified the price war on the mainland, with Tesla dropping prices of its Shanghai-made Model 3 and Model Y by 5 per cent on Sunday. Li Auto, Tesla’s closest rival in the premium EV segment, reduced prices on all its vehicles by up to 5.7 per cent, just a day after the US carmaker offered discounts to local customers.

Xiaomi’s electric sedan has three variants; the standard model is priced at 215,900 yuan (US$29,867), the high-end SU7 Pro goes for 245,900 yuan, while the SU7 Max, the most powerful in the series, is 299,900 yuan.

Analysts had predicted the SU7 series would exacerbate the ongoing price rivalry. Lei said at the launch ceremony that the company was selling the cars at a loss based on current prices, as it takes on Tesla and Geely Automobile-backed Zeekr.

Interior of a Xiaomi SU7 electric vehicle on display at a company store in Shanghai, April 2, 2024. Photo: Bloomberg

Retail sales of new energy vehicles in China totaled 1.76 million units in the first quarter of this year, down 31 per cent from the December quarter but up 34 per cent from the same period a year ago, according to data compiled by the China Passenger Car Association.

Xiaomi’s shares were up 2.65 per cent to HK$16.24 in Hong Kong on Tuesday.

Xiaomi began delivering its limited batch of 5,000 cars, known as the founder version equipped with additional accessories, on April 3. It started shipping the standard version of the SU7 and SU7 Max in Beijing and Shenzhen last Thursday, with the first delivery of the Pro version scheduled for the end of May.

Lei said Xiaomi had brought forward deliveries of its standard and Max version by 12 days, adding that the company had no plans to build off-road vehicles, and would primarily focus on the SU7.