China’s electric car sector has grown rapidly in recent years – boosted by purchase subsidies that expire at the end of 2022 – and dozens of domestic automakers have been embroiled in a bitter price war to get ahead in a crowded market.
Xiaomi is known for its affordable smartphones and home appliances, and the company’s CEO Lei Jun says it is now “risking its reputation” with the SU7 electric car, challenging Chinese car giant BYD and Elon Musk’s Tesla.
The base SU7 model will cost 215,900 yuan ($29,868), Lei said at a posh press conference in Beijing on Thursday night.
The sleek and sporty SU7 will be available in nine colors and will feature “sound simulation,” according to Lei, “to replicate the thrill of driving a sports car.”
The car is also packed with other niceties like karaoke equipment and a mini fridge.
Xiaomi has promised that it will be the “best-looking, best-driving and smartest car” priced under 500,000 yuan.
“The 200,000-250,000 yuan price range is currently the most competitive segment of China’s electric car market,” Jefferies Financial Group Inc. analyst Johnson Van told Bloomberg.
At a press conference on Thursday, Lei said his company’s debut car is on par with the Tesla Model 3 and in some ways surpasses the American automaker’s sedan. “I think we can offer a better product for Model 3 users,” he said.
Xiaomi is the world’s third-largest smartphone maker, and its experience in the sector has helped shape its electric car strategy.
Last month, Xiaomi president Lu Weibing told CNBC that about 20 million people use the company’s high-end smartphones. people, a number that helped determine the price of the SU7.
“I think there will be a lot of smartphone users among the first buyers. This is our strategy,” Lu said.
Tags: Chinese company Xiaomi entering electric car market vehicle
