China's Xiaomi, Tesla's New Rival, to Begin Deliveries of Its First EV Model This Month

By Trisha Andrada

Mar 12, 2024 04:11 AM EDT

Xiaomi said on Tuesday that it will begin delivering its first electric vehicle (EV) model, the SU7, to customers this month. The Chinese tech giant, well known as the fifth-largest smartphone maker in China, is joining the competitive EV market.

Xiaomi SU7 EV Model Ready For Delivery

According to Reuters, the Chinese tech firm announced via its Weibo account that 59 stores in 29 cities across the country will take customer orders. The new EV's price tag is anticipated to be announced at a launch ceremony on March 28.

Xiaomi's stock advanced by 7% as the market opened for the day. Last December, Xiaomi CEO Lei Jun announced the company's goal of becoming a top-five carmaker in the world with the introduction of the Speed Ultra 7 (SU7) sedan.

He boasted that the SU7's "super electric motor" technology might outperform the acceleration of Porsche's Taycan and Tesla's Model S.

Experts believe that Xiaomi's current clientele will be interested in purchasing the vehicle because of the operating system it shares with the company's well-known smartphones and other electronic products.

Smart car model SU7 Max by Xiaomi is displayed at the Chinese company's stand during the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 26, 2024. The world's biggest mobile phone fair throws open its doors in Barcelona with the sector looking to artificial intelligence to try and reverse declining sales.
(Photo : PAU BARRENA / AFP via Getty Images)

Xiaomi Venturing in the EV Market

The smartphone market has remained stagnant, prompting Xiaomi to consider diversifying into EVs, a strategy it hinted at in 2021. A Beijing facility of the state-owned manufacturer BAIC Group, with a yearly capacity of 200,000 vehicles, would reportedly manufacture its automobiles.

The company has committed to spending $10 billion on EVs over the next decade. Xiaomi is one of the few newcomers to China's EV industry to get approval from regulators, who have been hesitant to add to a supply glut.

Not too far off from the 21% increase seen in 2023, Reuters reported that China's EV sales jumped by 18% in January and February. Industry leader BYD Auto has made a series of deeper price cuts this year to entice customers amid falling domestic demand.

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