Xiaomi, a well-known tech company, is gearing up to launch its first electric vehicle (EV) on March 28. This news caused a surge in Xiaomi's stock prices by 7% during morning trading. The launch event will also reveal the EV's pricing, adding to the anticipation.
China's EV sector has been growing rapidly, with sales increasing by 18% in January-February, following a 21% growth throughout 2023. This growth is driven by price reductions by leading companies like BYD to attract more customers amid a dip in domestic demand.
Xiaomi's CEO, Lei Jun, has big ambitions for the company's EV venture. He aims for Xiaomi to become one of the world's top five automakers. The upcoming EV, known as the SU7 sedan, boasts a "super electric motor" technology that promises acceleration speeds surpassing those of Tesla and Porsche's EVs.
One key feature of the SU7 is its integrated operating system, similar to Xiaomi's popular smartphones and electronic devices. This could appeal to Xiaomi's existing customer base, making the transition to their EV smoother.
To venture into the EV market, Xiaomi partnered with a subsidiary of the state-owned automaker BAIC Group. They will produce the vehicles in a Beijing-based factory with an annual capacity of 200,000 vehicles. Xiaomi plans to invest $10 billion in the EV sector over the next decade, showing a strong commitment to this new venture.
Despite concerns from regulatory authorities about potential supply surpluses, Xiaomi has received approval to enter the EV market. This makes Xiaomi one of the few newcomers in China's EV industry to gain regulatory approval.
Overall, Xiaomi's entry into the EV market has generated excitement among investors and consumers alike. With its innovative technology and strategic investments, Xiaomi aims to make a significant impact in the growing EV sector.
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