Xiaomi made a significant entry into the global electric vehicle industry with the launch of its SU7 electric sedan. According to reports, this brand-new addition to the global car market has already started deliveries. Xiaomi is a famous Chinese company and is famous for producing phones. The company’s dive into the automative industry has created a stir in the automobile industry. Reports indicate that there is a high demand for the Xiaomi SU7, with customers facing a 7-month waiting period to receive their vehicles.
During a recent livestream, Xiaomi CEO Lei Jun expressed his surprise at the overwhelming response to the SU7. Jun mentioned that the demand for the electric sedan far surpassed Xiaomi's initial expectations, with customer interest reportedly being 3 to 5 times higher than anticipated. This surge in demand can be attributed to the competitive pricing of the Xiaomi SU7, which is nearly $4000 cheaper than its main competitor, the Tesla Model 3. The company may render a good budget-friendly option in the competitive sedan market, and can provide diverse affordable options to its customers.
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The deliveries have commenced for the standard and "Founder's Edition" versions of the SU7. However, the shipments for the higher-end variants, namely the Max and Pro models, are scheduled to start by the end of May 2024.
Acknowledging the intense competition and pricing pressures in the EV market, Xiaomi has admitted that they anticipate financial losses on the SU7. With a projected annual production volume of 60,000 units, reports suggest that Xiaomi could potentially incur a net loss of around 4.1 billion yuan, averaging about 68,000 yuan (equivalent to US$9,385) per car. This underscores the company's investment in expanding its presence in the electric vehicle segment, despite the short-term financial implications. Hence, the company has established that it is going to launch models, and compete in the automotive space.
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