Xiaomi, a prominent Chinese smartphone company, announced on Tuesday that it would begin preorders for the sports version of its SU7 electric sedan—dubbed the SU7 Ultra—which will be priced at over $110,000. The company reported the delivery of more than 20,000 SU7 EVs in October, marking a significant step in its quest to capture a slice of China’s competitive electric vehicle (EV) market. As of now, Xiaomi has delivered over 75,000 units, with the goal of reaching 100,000 vehicles by the end of November.
Having entered the EV sector in 2021, Xiaomi launched its debut model, the SU7, at a price slightly lower than Tesla’s Model 3 in China, prompting Tesla to reduce its pricing. Meanwhile, other Chinese players like Xpeng and Nio have taken years to achieve similar milestones, with Geely’s Zeekr recently claiming rapid production success in the EV arena.
Industry analyst Brian Tycangco sees Xiaomi as an emerging strong player, with Xiaomi’s EV profit margins reportedly aligning with those of competitor Xpeng. Anticipation is mounting for the SU7 Ultra, as it received over 3,600 preorders within 10 minutes, each requiring a deposit. The new model is expected to boost sales of Xiaomi’s premium SU7 Max by leveraging its performance credentials, highlighted by setting a record at Germany’s Nürburgring track.
Citi analysts increased their forecasts for Xiaomi, projecting car deliveries of 250,000 units next year and upgrading their price target for the company’s stock. Xiaomi’s SU7 ranked 17th in China’s EV sales list for September, with aspirations to elevate its position. For now, Xiaomi’s automobile sales remain limited to China, with expansion plans possibly taking a few more years.
Original Story https://www.cnbc.com/2024/10/30/chinese-smartphone-company-xiaomi-delivers-20000-su7-evs-in-october.html
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