New Competition: Tech Giant Enters EV Market, Competing with Tesla

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New Competition: Tech Giant Enters EV Market, Competing with Tesla

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March 14, 2024

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Xiaomi is gearing up to step into the automotive sector, posing new challenges for Tesla in the Chinese market.

Announced on Tuesday, Xiaomi disclosed that deliveries of its inaugural electric vehicle (EV) will kick off on March 28.

Unlike Apple’s unsuccessful venture, the renowned Beijing-based tech giant, celebrated for its budget-friendly smartphones, smartwatches, and various tech gadgets, is set to introduce its sporty Speed Ultra 7 (SU7) to the domestic market, as unveiled last year.

According to the BBC, Xiaomi asserts that its SU7 can outpace some Tesla and Porsche EVs in acceleration and boasts an impressive range of up to 497 miles (800 kilometers). The new EV from Xiaomi is equipped with driver-assist features, a digital cockpit, and is currently showcased in 59 showrooms across 29 cities in China, as reported by the South China Morning Post.

While Xiaomi has yet to reveal the exact price of the SU7, local news sources estimate it to be between 250,000 yuan (US$34,800) and 370,000 yuan ($51,500). Similarly, Tesla’s Shanghai-produced Model 3 falls within a similar price range of 245,900 yuan to 285,900 yuan.

In response to growing competition, Tesla has been reducing the prices of its vehicles in China to match the price cuts made by other players like BYD, a Chinese automaker that has gained significant traction in the EV market with its affordable offerings. BYD’s success is not confined to the domestic market; it’s also making strides in overseas markets.

Xiaomi plans to invest $10 billion in its vehicle business over the next decade and aims to expand SU7 sales globally within a couple of years. The company’s goal is to become one of the world’s top five automakers within the next 15 to 20 years.