BEIJING – China's Xiaomi said on Tuesday (March 12) that it will begin deliveries of its first electric vehicle (EV) model, the SU7, this month, entering the world's largest car market amid fierce price competition. did.
China's fifth-largest smartphone maker said in a Weibo post that it will accept orders at 59 stores in 29 cities nationwide. An announcement event is scheduled for March 28th, and the sticker tag for the new EV will also be announced.
Xiaomi stock rose 7% in morning trading.
China's EV sales rose 18% from January to February, not far from the 21% growth expected for the full year of 2023. This year, market leader BYD led major price cuts to attract consumers amid weak domestic demand.
At the Speed Ultra 7 (SU7) sedan launch in December, CEO Lei Jun said Xiaomi plans to become one of the world's top five automakers.
Ray touted that the SU7 is equipped with “super electric motor” technology that can deliver faster acceleration speeds than EVs from Tesla and Porsche.
Analysts say sharing the car's operating system with Xiaomi's popular mobile phones and other electronic devices will make it attractive to the company's existing customers.
Xiaomi is looking to diversify beyond its core business into EVs amid stagnant demand for smartphones, a plan it first embarked on in 2021.
The company's vehicles will be produced at state-owned automaker Beiqi Group's Beijing plant, which has an annual production capacity of 200,000 vehicles.
The smartphone giant has pledged to invest US$10 billion (S$13.3 billion) in cars over 10 years, making it one of the few to receive approval from authorities reluctant to widen the oversupply in China's EV market. It is one of the new entrants.
Also read: Xiaomi unveils first electric car, plans to become top automaker
