In an impressive showcase of ambition and strategy, Chinese tech giant Xiaomi has become a notable player in the electric vehicle (EV) market. On Tuesday, the company announced the delivery of over 20,000 of its SU7 electric vehicles (EVs) during October, marking a significant milestone as it seeks to aggressively increase production within a highly competitive landscape. Known primarily for its smartphones and household electronics, Xiaomi is expanding its reach, illustrating the company’s versatile nature and willingness to adapt to market demands.
The SU7, which is Xiaomi’s first model in the automotive sector, was released in late March at a competitive price point—approximately $4,000 less than Tesla’s Model 3, which was the cheapest offering at the time in China. This strategic pricing move was designed to attract consumers who are cautious about the cost of EVs, especially when more budget-friendly options exist. Following this initial launch, Tesla reacted by slashing the price of its Model 3 by around $2,000, illustrating the fierce price competition that shapes the current EV market dynamics.
Xiaomi’s bold plan includes a target of delivering 100,000 SU7 vehicles by the end of November, a figure that emphasizes the company’s ambitious nature. To date, the company has successfully delivered over 75,000 SU7 units since its launch—an achievement that, when compared to competitors, is particularly striking. For instance, other big names in the Chinese market, such as Xpeng and Nio, took about six years to achieve the same delivery volume that Xiaomi has accomplished in a shorter timeframe. Tesla, too, required 12 years to reach the 100,000 unit mark.
This unprecedented speed in production and delivery has positioned Xiaomi as a formidable newcomer in the EV sector. Notably, Xpeng set a monthly delivery record of over 20,000 cars in September. However, Nio continues to face challenges, struggling to maintain monthly sales against competitors. Electric vehicle manufacturer Zeekr, a subsidiary of Geely, has made headlines for its rapid ascent, boasting 100,000 vehicles produced in just one and a half years—further solidifying the intense competition within the industry.
Industry analysts are beginning to recognize Xiaomi’s potential influence in the EV space. Brian Tycangco, an analyst at Stansberry Research, highlighted that delivering 20,000 vehicles in October underlines Xiaomi’s emerging strength within the world’s largest EV market. Tycangco noted that the gross profit margins for Xiaomi’s electric cars during August were comparable to those of Xpeng, suggesting that Xiaomi has found a financially viable avenue within the EV realm.
Moreover, Xiaomi recently made headlines with the announcement of preorders for its high-end model, the SU7 Ultra, set to launch in March 2025. Each preorder requires a 10,000 yuan deposit, and within ten minutes of opening the system, the company reportedly received over 3,600 preorders. This significant interest underscores a growing enthusiasm for Xiaomi’s more premium offerings, suggesting the brand’s capability for growth beyond entry-level products.
Citi analysts have forecasted an optimistic outlook for Xiaomi’s future, predicting that the company could deliver up to 250,000 vehicles in the next year—an increase from the previous estimate of 238,000 cars. This revision in projections aligns with the company’s ambitions for penetrating both domestic and potential international markets. Despite currently limiting sales to China, Xiaomi plans to explore global opportunities within the next few years.
The popularity of the SU7 could also influence Xiaomi’s smartphone division, particularly with the recent launch of the Mi 15 flagship device, which employs Qualcomm’s newest chip. This could bolster the brand’s image across other tech sectors, emphasizing a synergistic strategy where success in EVs might enhance smartphone sales.
Xiaomi’s rapid entry and growth in the electric vehicle market illustrate a well-calculated approach to diversifying their business model. As the company continues to develop and deliver vehicles, it poses a significant challenge to established competitors. With an eye on both production and pricing strategies, Xiaomi’s ambitious plans suggest that it has the potential to play a critical role in shaping the future of the EV landscape in China and beyond.