Xiaomi, China’s fifth-largest smartphone manufacturer, is set to commence deliveries of its inaugural electric vehicle (EV) model, the SU7, as reported by Reuters on Tuesday.
Orders for the vehicle will be accepted through Xiaomi’s 59 stores spanning 29 cities across the nation, with a grand unveiling event scheduled for March 28 to disclose pricing details. Following the announcement, Xiaomi’s shares experienced a notable surge of seven percent during morning trading.
The move comes amidst a notable uptick in China’s electric vehicle sales, which saw an 18 percent increase during the January-February period. This growth coincides with market leader BYD’s recent strategy of implementing price reductions to attract consumers within a slowing domestic market.
With the SU7 sedan, Xiaomi aims to position itself among the top five global automakers. The vehicle boasts advanced electric motor technology, promising impressive acceleration speeds.
Furthermore, leveraging its widespread popularity, Xiaomi intends to integrate its well-received operating system into the SU7, catering to its existing customer base.
Xiaomi’s venture into the EV market represents a strategic diversification beyond smartphones, with the company earmarking a substantial investment of $10 billion in the automotive sector over the next decade.
Production of the vehicles will be overseen by a subsidiary of the state-owned BAIC Group in Beijing, boasting an annual capacity of 200,000 units.
