The SU7 model has attracted strong public attention for Xiaomi in the electric vehicle market.
Xiaomi’s shares soared after the launch of the SU7, its first electric vehicle with a competitive price and impressive design. While initial predictions suggested that Xiaomi could lose money, the growth potential in China’s promising electric vehicle market is being highly appreciated.
The launch of the SU7 marks an important step in Xiaomi’s product diversification strategy. This model has a sporty design inspired by Porsche, with a starting price of less than $30,000, lower than the Tesla Model 3 in China. Thanks to its price advantage and prestigious brand in the electronics industry, Xiaomi has attracted strong interest from consumers.
Xiaomi's newly launched SU7 electric car.
However, Xiaomi is expected to lose money on every SU7 it sells this year. According to Citi Research, the net loss could be as high as 4.1 billion yuan ($566.82 million), or 68,000 yuan (about $9,400) per car. The main reason for this loss is the fierce price war in the Chinese electric vehicle market and the signs of slowing consumer demand.
Despite the potential for losses, Xiaomi is still highly regarded for its long-term growth potential in China’s electric vehicle market, which is expected to grow strongly in the coming years, with around 240 new electric vehicle models competing in the 200,000-300,000 yuan ($27,644-$41,467) price segment, up nearly 20% from last year.
