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When a company’s aspirations are to be at the forefront of its industry, having the necessary means to achieve this objective requires a superlative investment that makes profits practically go to a secondary or tertiary level. This case study perfectly explains the situation of Xiaomi with its entry into the automotive sector, a competitive industry to which its own CEO, Lei Junadmitted to having respect and some fear for arriving late when the creation of its automobile division was announced, but nothing could be further from the truth.
And it is that Xiaomi has just delivered the 100,000th unit of your electric car since its registration began. Called Xiaomi SU7, it is a car tailor-made to compete with both the Porsche Taycan and the Tesla Model S.
Images of the Xiaomi SU7
The SU7, in fact, has in common with this latest model the product approach that the Model S had in its early stages: it is not the type of car that aspires to take center stage in the largest market share, but it does leave behind a significant billing margin with which a cash flow is achieved that allows the brand use that money that comes in to refinance other projects.
Having reached such a level of production in just 8 months (The SU7 was presented at the end of March of this year) is a commendable milestone, quite a feat on the part of the Chinese manufacturer, since with its presentation the reservation period began and it has not even needed to wait a year to deliver the 100,000 units of capacity that they had initially planned.
Taking into account that the brand has reached its planned quota a month and a half, almost ahead of schedule, has raised the annual production expectation from 100,000 cars to 130,000.
This, on the other hand, does not translate into net benefits, as Xiaomi itself has revealed. And, according to the numbers that it has presented and that Car News China echoes, although it has managed to reduce its losses per unit, the Chinese giant is losing about $5,250 for each unit of the SU7 that it delivers to its respective new owner, an amount that today, according to the current exchange rate, is equivalent to about 4,980 euros.
In total, this represents losses for the manufacturer of about 200 million dollars since production began. It should be noted that in China the SU7 has a price that starts at approximately 28,000 euros in exchange.
Even so, given the unit price of most of its products, the SU7 already has great weight within Xiaomi, although on its own account, in reality, it is a loss-making product. And within the conglomerate of companies of the giant Chinese group, Xiaomi Auto already represents just over 10% of Xiaomi’s total revenueabout 1.3 billion dollars.
Arrival in Spain of the Xiaomi SU7
The SU7 is, therefore, a car that stands out, but it only does so, for now, in China. In markets like ours it could have a good commercial performance, clearly stealing many sales from both Tesla and other manufacturers such as Porsche, Kia or Volkswagen, but the truth is that although it is expected to end up being launched internationally, at the moment it has not been confirmed. such thing.
Even so, Xiaomi expects that the total production of the platform that supports this car will be around 20 million units, so the rest of the products that the firm has planned, such as an SUV, may end up arriving in Spain. over the next few years.
Images of the Xiaomi SU7
Considering Xiaomi’s lack of prior automotive experience, how significant is their early success in achieving 100,000 SU7 units delivered, and what does it suggest about their potential long-term viability in the automotive market?
## Interview: Xiaomi’s Electrifying Debut – A Gamble Worth Taking?
**Introduction:**
Welcome to World Today News. Today, we have two distinguished guests joining us to discuss Xiaomi’s ambitious foray into the electric vehicle market with their the SU7. Joining us are industry analyst **[Guest 1 Name]** and automotive journalist **[Guest 2 Name]**.
Let’s delve into this electrifying story.
**Section 1: Entering a Competitive Arena**
* **
Interviewer: Xiaomi’s CEO, Lei Jun, admitted to feeling both respect and fear when entering the automotive sector. Knowing the fierce competition, was this a strategic calculated risk or a potential overreach for a brand known for electronics, not automobiles?
**Guest 1:**
**(Provides nuanced analysis regarding Xiaomi’s position within the market and the competitive landscape)**
**Guest 2:**
**(Offers a journalist’s perspective on Xiaomi’s entry, potentially comparing to other tech giants venturing into automotive)**
**Section 2: Milestone Achieved: 100,000Units**
* **Interviewer:**
Xiaomi has reached the impressive milestone of delivering 100,000 SU7 units just 8 months after its launch. This speed is remarkable, especially for a newcomer. What factors might have contributed to this rapid success?
**Guest 1:**
**(Analyzes potential factors like brand recognition, marketing strategy, pre-orders, and production efficiency)**
**Guest 2:**
**(Offers insights into the Chinese automotive market and consumer trends driving this success)**
**Section 3: Profitability: A Long Game?**
* **Interviewer:**
While Xiaomi celebrates this production milestone, the article mentions each SU7 sold results in a loss of around $5,250. Is this a sustainable strategy in the long term, or is Xiaomi playing the long game by prioritizing market share and brand building over immediate profits?
**Guest 1:**
**(Provides expert opinion on Xiaomi’s financial strategy and potential long-term goals within the automotive sector)**
**Guest 2:**
**(Discusses the potential benefits of establishing a strong market presence early on, even at the expense of short-term profitability)**
**Section 4: Global Ambitions: The Future of theSU7**
* **Interviewer:**
The SU7 is currently only available in China. What are the prospects for its international launch, particularly in markets like Europe and the US?
**Guest 1:**
**(Provides insights into potential market analysis, regulatory hurdles, and consumer acceptance in different regions)**
**Guest 2:**
**(Offers a journalistic perspective on Xiaomi’s potential expansion strategies, potential competitors, and anticipated challenges)**
**Concluding Remarks:**
* **Interviewer:**
Xiaomi’s entry into the electric vehicle market is undeniably ambitious. What are your final thoughts on Xiaomi’s potential for success in this highly competitive landscape?
**Guest 1 & Guest 2**:
**(Provide final thoughts and predictions for Xiaomi’s future in the automotive market)**
**Outro:**
Thank you to our guests, **[Guest 1 Name]** and **[Guest 2 Name]**, for providing their insightful perspectives on Xiaomi’s electrifying journey into the world of automobiles. Join us next time for more in-depth discussions on the latest global trends.
