Xiomi: The Chinese smartphone giant takes on Tesla
Today, Thursday 28 March, Xiaomi begins taking orders for its first electric vehicles. After several announcements in December about the Xiaomi SU7, the big day has arrived in a complex competitive context, which we will describe in detail below.
The first Speed Ultra 7 model sells for less than 500,000 yen
Xiaomi is hoping to enter the world of electric vehicles and cars in general with a top-of-the-range model. Imagine, it was Apple’s dream, yet the smartphone manufacturer ‘made in San Francisco’ threw in the towel before unveiling the slightest sketch.
Xiaomi is confident because, according to the BBC, the manufacturer is committed to investing $10 billion in its vehicle business over the next ten years. “The Chinese EV market is very mature and creates a very stable ecosystem for EV manufacturers,” said Abhishek Murali of research firm Rystad Energy.
Admittedly, the domestic market looks like a windfall from the outside, but it’s a $69,000 vehicle for a manufacturer that no one has ever seen produced, and in a particularly complex context with several manufacturers yet to pass the mass production stage: Lucid Motors, Rivian and Fisker.
A context of international tension
On the global market, there are still major questions about customs duties and the fairness of the rules between countries. These are serious questions, because Xiaomi is naturally counting on Europe and the United States to sell their electric vehicles.