China's latest EV is a 'connected' car from smart phone and electronics maker Xiaomi
CTV
Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.
Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.
The tech company will start taking orders for the SU7, a sporty four-door sedan, following a launch event with founder Lei Jun in Beijing on Thursday evening. Analysts think it will be priced in the 300,000 yuan (US$40,000) range.
Government subsidies have helped make China the world's largest market for electric vehicles, and a bevy of new makers are locked in fierce competition. Most of the industry's sales have been domestic, but Chinese makers are pushing into overseas markets with lower-priced models, posing a potential challenge to European, Japanese and American auto giants.
Lei is not bashful about that challenge, saying at an unveiling of the SU7 in December that Beijing-based Xiaomi aims to become one of the world's top five automakers in the next 15 to 20 years.
"I believe that one day, Xiaomi EVs will be a familiar sight on roads around the world,” he was quoted as saying in a company news release.
Xiaomi, founded in 2010, is entering an overcrowded market that analysts expect will undergo a shakeout in coming years, with weaker startups falling by the wayside.
The combined share of EVs and hybrids in China's auto sales is likely to reach 42% to 45% this year, up from 36% in 2023, according to Fitch Ratings. But the agency said in a December report that the competition could put pressure on automakers' short-term market share and profitability.
