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Xiaomi introduced its new electric vehicle.
Photo: Xiaomi YouTube channel
The billionaire co-founder of Xiaomi Corp. unveiled the company’s first electric vehicle on Thursday, signaling its ambitions to become a major global automaker in 15 to 20 years, competing with Tesla Inc. and Porsche AG.
The SU7, which stands for Speed Ultra, took to a stage at the China National Convention Center in Beijing with no visible riders, capping a presentation by CEO and co-founder Lei Jun to thousands of people.
Lei spent hours detailing the car’s features, which include a range of up to 800 kilometers (500 miles) on a single charge, adjustable spoilers, unique colors and a top speed of 265 kilometers per hour.
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The five-seater sedan is powered by batteries from Chinese market leader Contemporary Amperex Technology Co. Ltd. and BYD Co., depending on whether it has a single or dual motor configuration.
Xiaomi’s move into electric vehicles is a $10 billion bet by Lei that his company can revolutionize the transportation sector in the same way it did with smartphones a decade ago. Lei, also a prolific venture capitalist, called it his latest entrepreneurial bet.
“Xiaomi’s goal is to build a dream car that is as good as Porsche and Tesla,” Lei said at the launch event on Thursday.
But since the company first announced its electric vehicle plans in 2021, the regulatory landscape and competition in China, the world’s largest automotive market, have changed significantly.
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Beijing has restricted manufacturing permits to new entrants, meaning Xiaomi will have to work with state-owned Beijing Automotive Group Co. to produce its electric vehicles. Government subsidies that reimbursed consumers up to 60,000 yuan ($8,440) for buying an electric vehicle ended in 2022. The SU7 is also vying for attention in a market that includes hundreds of models from dozens of brands.
Lei has previously said that Xiaomi intends the SU7 to compete with Porsche’s Taycan Turbo in terms of performance and Tesla’s Model S in terms of technical features. The Model S starts at 698,900 yuan and the Taycan at 898,000 yuan, which is well above the mid-range price range of 200,000 to 300,000 yuan that many expect the SU7 to fall into.
Xiaomi, once known as a maker of cheap smartphones, is struggling to continue growing in an increasingly saturated and stagnant global market. Before the September quarter, the company had reported a decline in revenue in every three-month period since 2021. Now it wants to challenge not only other electric vehicle makers but also new entrants like Huawei Technologies Co. in an area where it has shown little. Unique experience.
Lei said he has driven 150 different cars since he decided to build the SU7.
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Xiaomi shares gave up earlier gains, falling 0.3% on Thursday afternoon. They rose 4.1% on Wednesday.
Lei, who has called the SU7 the “performance beast” in the X, has indicated that Xiaomi will not resort to undercutting its competitors to bring its vehicle to market. The car is aimed at people who have a passion for technology, performance and taste, he said.
He also acknowledged competitors on social media including BYD, XPeng Inc., Li Auto Inc. and Huawei, calling them pioneers of China’s new energy vehicle industry. In a Wednesday post on social media platform Weibo, XPeng CEO He Xiaopeng said he welcomed Xiaomi’s entry into the automaker family and wished the company big sales in 2024.
Xiaomi has not yet said how much the SU7 will cost. Lei suggested the amount could be between 99,000 and 400,000 yuan.
According to the China Automotive Research and Technology Center, Tesla has sold fewer than 200 Model S cars in China since the revamp this year, while Porsche delivered about 3,600 Taycan family electric vehicles in the country in 2023.
The SU7 will go on sale next year and will accelerate from 0 to 100 kilometers per hour in 2.78 seconds, Lei said. The engine will feature 21,000 rpm, which is said to be higher than the Model S and Taycan Turbo. Using the Gigacasting manufacturing pioneered by Tesla, Xiaomi’s factory developed a 9,100-ton system it calls Hypercasting.
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