Xiaomi’s Electric Car Venture Gains Momentum
Chinese tech giant Xiaomi has announced a significant milestone in its electric car venture, delivering over 20,000 SU7 EVs in October. This achievement marks a major ramp-up in production for the company, which aims to deliver 100,000 SU7 vehicles by the end of November.
A New Player in the EV Market
Xiaomi first revealed plans to make cars in 2021 and began building a dedicated manufacturing plant the same year. The company released the basic version of the SU7, its first car, in late March for about $4,000 less than Tesla’s cheapest car — Model 3 — in China at the time. Tesla subsequently cut the car’s price by about $2,000.
Impressive Sales Figures
Xiaomi has delivered more than 75,000 SU7 cars to date, including October’s figures. Chinese rivals Xpeng and Nio took about six years to produce 100,000 electric cars, while it took Tesla 12 years. While Xpeng delivered a monthly record of more than 20,000 cars in September, with about half owed to its newly launched, lower-cost brand Mona, Nio has struggled to keep monthly deliveries above 20,000 cars.
Analysts Weigh In
“News of 20k deliveries in October confirms that [Xiaomi] is going to be a force to reckon with in the world’s largest EV market,” said Brian Tycangco, an analyst at Stansberry Research. He noted that Xiaomi’s electric car gross profit margins in August were similar to Xpeng’s that month and have likely improved since, given ramped up production.
New Model on the Horizon
Xiaomi also announced it was taking preorders for the high-end sports version, SU7 Ultra, starting at 814,900 yuan ($114,304), ahead of a product release in March 2025. The company claimed that within 10 minutes, it received more than 3,600 preorders, each requiring a 10,000 yuan deposit.
Increased Forecasts
Citi analysts increased their price target on Xiaomi to 30.60 Hong Kong dollars ($3.94), up from 22.70 HK dollars. They also raised forecasts for the company’s smartphone shipments, following the launch of Xiaomi’s flagship Mi 15 device Tuesday — the first phone to use Qualcomm’s newest chipset.
A Growing Presence in the EV Market
Xiaomi’s SU7 ranked 17th last month with 13,559 cars sold, according to data from Chinese car industry site Autohome. While the company currently only sells its cars in China, it told reporters earlier this year it would take at least two to three years for any overseas launch. With its impressive sales figures and new model on the horizon, Xiaomi is solidifying its position as a major player in the electric vehicle market.
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