XIAOMI, the world’s third- largest smartphone vendor with a loyal young clientele in China, launched its highly anticipated electric vehicle (EV) Thursday evening, marking its entry into the world of automobiles.

The SU7 — short for Speed Ultra 7 —sedan, priced between 215,900 yuan (US$29,860) and 299,900 yuan, began to take orders after its official launch Thursday evening.

Previously, the brand only revealed that its car will be priced below 500,000 yuan. Models it unveiled in over 70 stores in 29 Chinese cities Monday, with its bold coloring, stylish aesthetics, and a distinctive appearance, have drawn comparisons to Porsche’s Taycan and Panamera and Aston Martin’s sports car models, earning it the playful Chinese nickname “Bao Shi Mi” from enthusiasts.

Prior to the launch, Xiaomi’s CEO and founder Lei Jun showcased a limited-edition EV factory uniform jacket. The 800 pieces were snatched up by fans in seconds at the brand’s online mall.

The launch fulfills an ambition of Lei, who announced the company’s foray into EVs in 2021. He pledged to invest US$10 billion in Xiaomi's auto business, describing it as “the last major entrepreneurship project” of his life.

Since then, updates on the project, from its manufacturing partnership with State-owned automaker BAIC Group to the December showcase of the sedan, have been feverishly followed in China.

Analysts have been split on whether Xiaomi’s car project will succeed. Some say it is a natural extension for Xiaomi — whose rice cookers, air purifiers, and other electronics are ubiquitous in Chinese homes — allowing it to offer its users a more seamless digital experience.

However, in a departure from the company’s image as an affordable brand, Lei has said the SU7 will be “a bit expensive.”

“Can Chinese consumers take that leap psychologically from mass-market, cool, inexpensive consumer products and home products to premium EV?” asked Le Tu, founder of consultancy Sino Auto Insights, noting that most of the vehicles sold in China are below 300,000 yuan.

Xiaomi’s SU7 is going on sale at a time when China’s auto market, the world’s biggest, is battling challenges on several fronts, including a price war and slowing demand for cars.

“The current market environment is quite challenging for newcomers with the top 10 players continuously expanding their market share,” said Gavekal Dragonomics analyst Ernan Cui.

“If Xiaomi can’t sell at scale in a short time, it’s facing the risk of being a profit dragger for the company for longer.”

Working in Xiaomi’s favor, however, is revenue generated from other business units, added Le of Sino Auto Insights.

Xiaomi has deep pockets compared to other EV players, a Bernstein analysis of 12 companies in January showed. It ranked Xiaomi third, behind Huawei and SAIC, but ahead of nine automakers including BYD and Xpeng, in terms of cash and cash equivalents.

One version of the sedan comes with a driving range of up to 668 km on a single charge, while the other has a range of up to 800 km. In comparison, Tesla’s Model S has a range of up to 650 km.

Bernstein analysts said that they believe Xiaomi’s most direct competitors will be the likes of XPeng and Tesla.

(SD-Agencies)

Technological innovations

The SU7 is equipped with Xiaomi’s self-developed Hyper OS, which is designed to provide a seamless integration between the vehicle and other Xiaomi devices, such as smartphones and smart home products. This focus on connectivity and the “smart cockpit” is a key differentiator for Xiaomi, leveraging its expertise in smartphone technology to create a unique and compelling user experience in its vehicles. The ability to connect the car to a broader ecosystem of devices and services is a feature that is highly valued by consumers, particularly in China, where the adoption of digital technologies is rapid and widespread.

(This paragraph was generated

by AI chatbot Kimi.)