Xiaomi, the Chinese smartphone company, has recently seen success with its new electric vehicle, the SU7 sedan. CEO Lei Jun announced that they have received over 70,000 orders for the vehicle by April 20, which is close to their original full-year delivery target. This strong sales performance has prompted the company to increase their delivery goal to 100,000 units for this year.
One of the key factors contributing to Xiaomi’s success is the pricing strategy for the SU7 sedan. Priced at about $4,000 less than Tesla’s Model 3, the SU7 has been able to attract a significant number of buyers. Despite undercutting Tesla on price, Xiaomi’s new electric vehicle has been able to generate strong demand and is moving closer to breaking even.
Analysts from Citi have raised their gross profit margin forecast for Xiaomi’s autos segment to 6% for this year, up from the previous expectation of a 10% loss. They have also increased their earnings per share forecast by 25% and predict that Xiaomi will ship 100,000 cars this year, followed by 200,000 next year and 280,000 in 2026. These projections are based on the current sales performance and positive market reception of the SU7 sedan.
In comparison to other electric vehicle manufacturers in China, Xiaomi’s performance is quite impressive. While Tesla sold over 600,000 cars in China last year, Li Auto sold 376,000 cars, and Nio sold just over 160,000 cars. Xiaomi’s entry into the electric vehicle market has been well-received and the company is looking to capitalize on this momentum.
Xiaomi is not stopping at the SU7 sedan and has plans to release an SUV in the second half of 2025. CEO Lei Jun has expressed long-term ambitions to become one of the top five automakers in the world. Despite global aspirations, Xiaomi plans to focus on the domestic market for the next three years before expanding internationally. With a strong foundation of global influence and a loyal following of Xiaomi fans, the company is confident in its future success.
Xiaomi’s new electric vehicle has exceeded expectations in terms of sales performance and market reception. With a competitive pricing strategy, strong analyst projections, and plans for future expansion, Xiaomi is well-positioned to make a significant impact in the electric vehicle market.
Leave a Reply