Chinese tech major, Xiaomi, has announced that it will begin deliveries of its first electric vehicle (EV) in the ongoing month, marking its debut in the fiercely competitive auto sector. The price for the new car is anticipated to be revealed on March 28.
Xiaomi, which ranks as China’s fifth-largest smartphone producer, confirmed it has 59 stores spread across 29 cities nationwide for accepting orders. This development comes amidst an escalating pricing battle among companies such as BYD and Tesla in China, which is the world’s largest automobile market.
During the launch of the Speed Ultra 7 (SU7) in the previous year, Xiaomi’s CEO Lei Jun declared the company’s ambition to emerge as one of the world’s top five carmakers. Xiaomi has pledged to channel $10 billion (£7.8 billion) into its auto business over the forthcoming ten years.
Describing the SU7, Mr. Lei labeled it as a “super electric motor” technology, asserting its capability to accelerate faster than certain EV models from Tesla and Porsche. Xiaomi is pinning its hopes on the car’s shared operating system with its phones and other devices, aiming to attract existing customers.
The company is one of the few new potential entrants in China’s electric vehicle market that has received approval from authorities as they attempt to control the surge of new competitors.
The SU7 will be manufactured by a branch of the state-owned car manufacturer, BAIC Group, at a Beijing-based facility capable of producing up to 200,000 vehicles annually. The introduction of Xiaomi Automobile occurs amidst an escalating price war in China’s EV market.
Tesla, led by multi-billionaire Elon Musk, has reduced its cars’ prices in China by thousands of dollars in recent months, following the suit of local competitors such as BYD who have decreased their prices. In the wake of today’s announcement, Xiaomi shares saw a surge of over 10% in Hong Kong.
