Xiaomi says sales of its EV are 3-5 times higher than expected

Xiaomi’s CEO, Lei Jun, shared some exciting news on Thursday during a live stream on Douyin (China’s TikTok). He mentioned that sales of Xiaomi’s first electric car, the SU7, have been way better than expected, reaching 3-5 times higher than their initial estimates. This comes as they started delivering the standard versions of the car to customers even earlier than planned.

The SU7, which was launched just last month, is already making waves in the Chinese electric vehicle (EV) market. It’s drawing attention not only for its sleek design inspired by Porsche but also for its affordable price tag – starting at under $30,000. That’s $4,000 cheaper than Tesla’s Model 3 base model in China.

Despite knowing they might lose money on each SU7 sold, Xiaomi is diving into the EV market with confidence. They’ve started delivering the standard version after previously releasing a limited batch of 5,000 “Founder’s Edition” cars on April 3rd. Lei Jun even mentioned that they moved up the delivery dates by 12 days for the standard version.

During the livestream, Lei Jun emphasized Xiaomi’s commitment to regular software updates, aiming for improvements at least once a month to ensure a smooth user experience.

Xiaomi isn’t stopping with just the standard SU7. They’re planning to roll out the Max models this month and the Pro models by the end of May, expanding their offerings in the EV space.

While Lei Jun didn’t spill the beans on any plans for a sports utility vehicle (SUV), he did receive praise from Wei Jianjun, CEO of Great Wall Motor, for Xiaomi’s impressive feat of bringing an electric car to market in just three years.

Xiaomi’s entry into the EV market has stirred up competition, with other Chinese EV brands slashing prices and offering subsidies to stay competitive. Despite the challenges in China’s EV market, analysts believe Xiaomi has an advantage with its financial resources and expertise in smart technology, particularly in smart dashboards, which Chinese consumers highly value.

However, analysts also warn that Xiaomi might face significant losses with the SU7. With a projected volume of 60,000 units this year, Citi estimates a potential net loss of 4.1 billion yuan, averaging out to around 68,000 yuan per car.