Chinese smartphone giant and world’s third largest manufacturer, Xiaomi, has joined tech firms in pushing into electric vehicle (EV) production.
Following months of speculations, Xiaomi Corp. has given the first glimpse of its debut electric vehicle, a five-seat sedan with a panoramic glass roof.
Bloomberg reports that a filing released by China’s Ministry of Industry and Information Technology (MIIT) on Wednesday, November 25, shows the long-anticipated EV will be branded Beijing Xiaomi SU7 and manufactured by state-owned, Beijing-based Beijing Automotive Group Co (BAIC).
BAIC is expected to build two versions of the new Xiaomi-branded model in the filing — the SU7 and the SU7 Max.
Both models had an “MI” logo in the front and carried the “Xiaomi” name on their rear, pictures published on the MIIT’s website showed.
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Xiaomi beats Apple in the EV race
With the development in China, Xiaomi has beaten the US smartphone giant, Apple, in the race to create its own line of cars.
Unconfirmed reports have it that ‘Apple Car’ is likely to be delayed until 2026, according to Asia Financial.
Apple has been working on its electric car project, known as Project Titan, since 2014, but has faced several challenges and leadership changes. The company is reportedly aiming for a fully self-driving vehicle with no steering wheel or pedals, but has not confirmed any details or timeline.
Meanwhile, Xiaomi announced its entrance into the EV market in March 2021, and said it plans to invest $10 billion into the business over the next 10 years. The company is known for its affordable and innovative smartphones, smart devices, and internet services.
Xiaomi’s EV features and challenges
The SU7 will be powered by auto giant BYD’s lithium-iron-phosphate batteries and a top speed of 210 kilometres per hour (kph). Meanwhile, the SU7 Max will have battery giant CATL’s nickel- and cobalt-based lithium batteries and speed of up to 265 kph.
The move could intensify competition in the world’s largest auto market, where overcapacity and slowing demand have fanned a bruising price war and hit supplier margins.
Xiaomi has indicated it still needs clearance from the MIIT, which assesses new automakers and models for technical and safety requirements.
The company will also face challenges from other tech companies that have entered the EV sector, such as Baidu, Alibaba, and Huawei, as well as established players like Tesla, Nio, Xpeng, and Li Auto.
Xiaomi has not revealed the price or launch date of its EV, but some analysts expect it to be under $100,000 and available by 2025.
What is the market share of Xiaomi in China?
The market share of Xiaomi in China varies depending on the product category and the source of data. According to Statista, Xiaomi had a market share of over 16 percent among smart home electronic brands in China as of the third quarter of 2020. According to Counterpoint, Xiaomi had a market share of 14 percent among smartphone brands in China in the second quarter of 2023. According to Gizmochina, Xiaomi had a market share of 24 percent among TV brands in China in the first quarter of 2023. These figures show that Xiaomi is a leading player in the Chinese market for various consumer electronics.