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Xiaomi CEO Lei Jun revealed the expected price of the company’s first electric car, the SU7, ahead of its launch later this week.
In a post on Chinese social media platform Weibo, Lei Jun announced Xiaomi SU7’s aim to provide the best phone under 500,000 yuan ($69,328), the best driver and the smartest.
This is the first time Xiaomi has confirmed the end of the price range. SU7 will be introduced on Thursday and will be available for pre-order.
Prior to the announcement, Xiaomi launched the SU7 in stores in 29 cities in China, and Lei Jun announced that the test drive would start on the same day.
Xiaomi aims to focus on the top end of the electric car market and positions itself to compete with Chinese manufacturers such as Tesla. In comparison, the Tesla Model S starts at 698,900 yuan, while the Model 3 starts at 245,900 yuan.
Xiaomi will face competition from domestic electric companies such as BYD, NIO and Xpeng Motors, as well as Tesla. Companies like Li Auto are also vying to dominate the high-end EV market.
Xiaomi, always known for its smartphones and consumer electronics products, announced that it will enter the electronics market in 2021. Now, three years later, the company has entered the competition and is developing rapidly.
A war on Tesla in China’s electric car market in 2022 is causing other electric car manufacturers to cut prices to increase demand and competition for availability. This higher cost impacts business margins and profitability.
Due to Xiaomi’s fierce competition and status as a new entrant to the electric vehicle market, price will be key to the SU7’s success. Emphasizing the importance of this cooperation, Lei Jun said: “Three years ago, I announced that Xiaomi would enter the electric car business. This is my last adventure; I will put my reputation on the line and fight for a vision I believe in.”