Xiaomi was one of the few new electric vehicle manufacturers to get approved by China, amidst a rush of prospective new entrants wanting to take advantage of the country's EV boom.
ADVERTISEMENTXiaomi has revealed that it will begin deliveries for its first electric vehicle - named Speed Ultra 7 or SU7 - later this month, marking the Chinese technology company’s entry into the global automobile market.
Following the news, Xiaomi’s shares saw their largest intraday jump in over a year, at 11.34%, clocking in at HKD 14.92 (€1.74) at market close on Tuesday.
The company’s CEO, Lei Jun, said when announcing the venture back in 2021, that it would be the final major entrepreneurial project of his life and that he was willing to put his reputation on the line for the vehicle.
When launching the car in 2023, Lei Jun added that Xiaomi was striving to be one of the five best automobile producers globally in the next 15 to 20 years. He also said that about $10 billion (€9.15 billion) would be invested in this arm of the business in the next decade.
The company, which has about 59 stores ready to take car orders, also revealed that it will disclose the price of the vehicle on 28 March.
Chinese EV market continues to heat up
In the past few months, the Chinese EV market has considerably heated up, amidst a price war between two of the top EV markers in the world, Tesla and Chinese producer BYD.
Recently, Tesla has had to slash prices in China, in response to BYD also cutting prices.
China has the highest number of electric vehicles on the road - about 20 million vehicles - accounting for over half of total global EVs. It is also the biggest producer of EVs, manufacturing about 5.47 million vehicles in 2022, according to Statista.
Demand for electric vehicles, especially second-hand ones, has risen significantly, as consumers become more environmentally conscious.
This has led to several other Chinese companies wanting to venture into the coveted market recently.
However, Xiaomi was one of the lucky few to get approved by the regulators, which are currently trying to control the number of new players.
Other major tech companies such as Apple have had to let go of EV dreams, as the new manufacturing challenges in the automotive sector are too overwhelming.
According to Jun, Xiaomi’s SU7 will likely be able to accelerate even faster than certain Porsche and Tesla electric vehicles.
Xiaomi EV also recently introduced its five core technologies, namely Battery, Xiaomi Pilot Autonomous Driving, E-Motor, Xiaomi Hyper Die-Casting and Smart Cabin.
According to the company, this is another step forward to closing the loop of the smart ecosystem of Human x Car x Home. The new electric vehicle’s having the same operating system as its other products, such as its phones, is also expected to be a key selling point for this venture.
