China’s tech giant Xiaomi announces commencement of deliveries for its first electric vehicle model

Xiaomi, a prominent tech company in China, has announced that it will begin delivering its inaugural electric vehicle (EV) model, the SU7, this month, marking its entry into the competitive automotive industry, as reported by Reuters.

The news was shared by Xiaomi on the social media platform Weibo, indicating that customers can place orders for the SU7 at its 59 stores located across 29 cities nationwide.

The highly anticipated launch event for the SU7 is scheduled for March 28, during which the price of the electric sedan is expected to be revealed.

Following this significant announcement, Xiaomi’s stock witnessed a considerable 7 percent surge during morning trading.

During the unveiling of the SU7 in December, Xiaomi’s CEO Lei Jun articulated the company’s ambitious objective to become one of the top five automakers globally.

Jun highlighted the SU7’s advanced “super electric motor” technology, emphasizing its capability to surpass the acceleration speeds offered by EVs from companies like Tesla and Porsche.

Analysts anticipate that Xiaomi’s integration of the SU7’s operating system with its popular smartphones and electronic devices will attract its existing customer base to its new EV venture.

Xiaomi’s entry into the electric vehicle market comes amid a broader trend of increasing EV sales in China, which saw an 18 percent rise in January-February. However, the competitive landscape has resulted in deeper price cuts, with market leader BYD leading the way.

This move by Xiaomi aligns with its strategic efforts to diversify beyond its core smartphone business, a strategy initially announced in 2021.

The SU7 vehicles will be manufactured by a subsidiary of the state-owned automaker BAIC Group in a Beijing factory with an annual production capacity of 200,000 vehicles.

Xiaomi’s plan to invest $10 billion in the automotive sector over the next decade has received approval from Chinese authorities, despite initial concerns about entering an already saturated market.

The company’s commitment to innovation and technology integration is evident in its decision to incorporate a shared operating system with its popular devices, positioning Xiaomi as a significant player in China’s EV sector.