Chinese car manufacturers are no longer catching up with Western ones, but in many ways they are setting trends and impressing with the speed of technological development. That they will be a strong competitor for rivals from all corners of the world was demonstrated by Xiaomi last time when it confidently entered the electric car market. However, the giant, which focuses mainly on the production of smartphones, will initially lose money on its premiere model SU7.
A price war is raging in the electric car market in China, and Xiaomi has readily adapted to it. They set the lowest possible price for the technology-packed SU7 at just under 216,000 yuan. That is, lower than how much Tesla sells the Model 3 for, which will cost customers in China 246,000 yuan.
Converted for around seven hundred thousand crowns, the customer from Xiaomi will receive a very well-designed electric sedan with a modern BYD battery. The car recharges with enough energy to drive 350 kilometers in just a quarter of an hour, it can drive a total of seven hundred kilometers on a single charge, and it accelerates from “zero to one hundred” in 5.28 seconds.
And the orders keep pouring in. In just the first 27 minutes after the launch of sales on March 28, Xiaomi received fifty thousand of them. On Wednesday, April 3, their number had already doubled.
Xiaomi SU7 pic.twitter.com/7XMO0l2tm3
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However, at least initially, the basic version of the SU7 will make a profit on the sale of the 216,000 yuan. At the press conference during the presentation of the car, the head of Xiaomi Lej Tyun admitted this. At the same time, Chinese societies in particular rarely admit to such “birth pains”. Lei Yun did not give further details. However, New York-based analyst firm CreditSights of the Fitch Group offered its calculations, as the website pointed out Carnewschina.
She calculated that Xiaomi will spend at least the first two years on the SU7. This year alone, approximately sixty thousand of them are to be delivered to customers. According to estimates pointed out by the agency ReutersXiaomi should make almost ten thousand dollars per car this year.
The reason for the initial losses is a combination of the car’s relatively low price and limited production volume. However, it should gradually increase. While the monthly capacity of the factory in Beijing is now between four and five thousand cars, it is expected to increase to six thousand by the end of the year. The theoretical capacity of the entire factory is up to 150,000 cars per year. Next year, work will begin on its expansion, after which the maximum possible number of cars produced should double.
Xiaomi SU7|Carscoops
According to the Chinese media MyDrivers, Xiaomi still does not have time to satisfy the demand, delivery times have gradually increased to the current eight months.
So far, investors believe in the plan of Lej Ťün, who declared entering the electric car market as “the last big business project of his life”. Shares of Xiaomi rose by nine percent after the press conference to start sales in March, then corrected slightly.
The company has committed to a massive investment of ten billion dollars in the automotive business. Thanks to them, they aspire to become one of the five largest car companies in the world within fifteen to twenty years. Until now, the vast majority of the company’s revenue has come from the sale of smartphones.
2024-04-06 08:30:00
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