Xiaomi Corp. announced that it will start selling its highly anticipated electric vehicles in 29 cities on March 28, causing their shares to surge by as much as 9.9% in Hong Kong. The Beijing-based electronics company, known for its smartphones, has made a significant investment in entering China’s competitive EV market, currently dominated by Tesla Inc. and BYD Co. Despite the challenging landscape, Xiaomi is determined to carve out a space for itself in this rapidly growing sector.
Led by billionaire co-founder Lei Jun, Xiaomi’s foray into carmaking is seen as a risky yet potentially rewarding endeavor. The company’s EV project, initiated three years ago, represents Lei’s final entrepreneurial gamble and is considered even more daunting than building a successful smartphone brand from scratch. Xiaomi’s decision to partner with state-owned Beijing Automotive Group Co. for manufacturing demonstrates their commitment to expedite the launch of their electric vehicles and compete effectively in a market where state reimbursements for EV buyers have ceased.
The SU7 series of electric vehicles, standing for Speed Ultra, boasts impressive acceleration abilities with the capability of going from 0 to 100 km/h in 2.78 seconds. Xiaomi’s pricing strategy for its EVs will be crucial in the face of stiff competition from other major players like BYD, Nio, and Li Auto. Analysts predict that the launch of Xiaomi’s electric vehicles could potentially boost the company’s sales by up to 4% this year, marking a significant milestone in their move towards becoming a major player in the increasingly crowded EV market.
