Chinese consumer tech giant Xiaomi will launch its first-ever EV at a press conference in Beijing Thursday, injecting itself into a fiercely competitive sector in the world’s largest car market.
China’s EV sector has grown rapidly in recent years — propelled by purchasing subsidies that were discontinued in late 2022 — and dozens of domestic automakers are engaged in a stiff price war to get ahead in a crowded market.
Xiaomi is known around the world for affordable smartphones and sleek home appliances, and CEO Lei Jun says he is now putting his “reputation on the line” with the SU7 EV, and challenging Chinese car giant BYD and Elon Musk’s Tesla.
Sleek, sporty, and available in blue bay, olive green or elegant grey, the SU7 even includes “sound simulation”, Lei says, “to recreate the thrill of driving a sports car”.
Lei has not divulged the price, but has promised it will be “the best-looking, best-driving and smartest car” costing under 500,000 yuan ($69,200).
Analysts have said they expect it to come in at half that price.
“If my guess is correct, the 200,000 to 250,000 yuan range, that actually is the most competitive segment in the China EV space at the moment,” Johnson Wan, an analyst at Jefferies Financial Group Inc, told Bloomberg.
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