Chinese smartphone company Xiaomi announced on Thursday that it will sell its first SU7 electric vehicle for a much lower price than the Tesla Model 3, as price wars intensify in China’s fiercely competitive electric car market. CNBC.
Xiaomi CEO Lei Jun said the standard version of the SU7 vehicle will sell for 215,900 yuan ($30,408) in the country — a price he acknowledged would mean each car would sell at a loss.
The price of Tesla’s Model 3 car starts at 245,900 yuan in China.
One SU7 every 76 seconds
Lei claimed that the standard version of the SU7 surpassed the Model 3 in more than 90% of its specifications, except for two aspects where he said Xiaomi would need at least three to five years to catch up with Tesla .
He also said that the SU7 has a minimum range of 700 kilometers compared to the Model 3’s 606 kilometers.
Orders topped 50,000 cars in the 27 minutes since sales began at 10:00 p.m. Beijing time on Thursday, the company said.
Deliveries are scheduled to begin by the end of April, Lei said.
He also claimed that Xiaomi’s machine factory, for which all “key” steps are fully automated, can produce an SU7 every 76 seconds.
It was not immediately clear whether the factory is fully operational.
Earlier this week, Xiaomi’s CEO said on social media that the SU7 will be the best sedan “under 500,000 yuan” ($69,328).
The car is entering a highly competitive market in China, where companies are launching lots of new models and slashing prices to survive.
Its Tesla Model 3 is China’s best-selling new electric sedan, which has a driving range of at least 600 kilometers and costs less than 500,000 yuan, according to data from industry website Autohome.
Wide range of accessories
The heads of competing electric car startups Nio, Xpeng and Li Auto were among the guests present at the Xiaomi SU7 launch event.
Lei unveiled a range of accessories on Thursday, such as a car fridge, a custom windscreen and a smartphone mount, some available for free with the purchase of a car before the end of April and others at a separate price .
The SU7 supports Apple’s Car Play and can integrate with the iPad, Lei said. He also unveiled the driver assistance technology for highways and cities, which is due to be fully available in China in August.
Tesla’s Autopilot for driver assistance on highways is available in China, but the company’s “Full Self Driving” for city streets has not yet been launched in the country.
The SU7 is part of Xiaomi’s recently launched “Human x Car x Home” strategy, which aims to build an ecosystem of devices connected to its new HyperOS operating system.
Lu told CNBC that the SU7 will be sold to consumers in China first and that it will take at least two to three years for any overseas release.
Tags: Xiaomi launched electric car crushing price SU7 produced seconds
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