Xiaomi CEO Lei Jun has shared new information about his company's automotive division, which is usually associated with smartphones. He provided a timeline for future products, including the tri-motor SU7 Ultra. He also mentioned the intention of Xiaomi Automobile to expand its portfolio to European markets and enter the top five car manufacturers in the world.
Breaking into the top five is a lofty goal for an automaker that's only three years old, but Xiaomi Automobile has a head start thanks to its reputation and brand recognition around the world. A rich company is able to invest huge amounts of money in production and promotion – Lei Jun previously announced an amount of 10 billion dollars in initial investment alone.
Xiaomi is trying to do what Apple has been teasing us with for years, but which it could not do by closing its own car project. Xiaomi Automobile's track record is short so far, but quite promising considering the hype and demand we've seen surrounding the first electric car model launched.
- The Chinese car division has developed its flagship model, the SU7 sedan, faster than expected. The SU7 hit the market in late 2023 and received over 50,000 orders within the first 27 minutes of going on sale. Since then, the company has been forced to ramp up its assembly lines and production targets to keep up with demand.
- In July, Xiaomi announced a new 1548-strong version of the SU7 Ultra, which will appear in the first half of 2025.
- Xiaomi Automobile is also already developing the next generation to compete with the Tesla Model Y, possibly in European markets and beyond.
As noted by CnEVPostXiaomi CEO Lei Jun went live to share some company news, including a clearer timeline for when customers will see the production version of the aforementioned SU7 Ultra. According to the video, the four-door sedan with a capacity of 1,548 horsepower will appear on the Chinese market in the first quarter of 2025.
Because this BEV is so powerful, Jun said that each instance will come with “entry-level mode.”
“Drivers must pass a step-by-step test to unlock the car's full performance, 'unleash it'”– said the director.
While Xiaomi will initially focus on the two SU7 variants in China, the company will soon expand its presence in Europe as well. The automaker unveiled the SU7 in Paris during the 2024 Olympics, where Lei Jun said it will be available worldwide, without giving a specific time frame for when that might happen.
Recently, Xiaomi also took the SU7 Ultra to the world-famous Nürburgring track, reaching a top speed of over 350 kilometers per hour.
The final goal of the company, according to the head of Xiaomi, is to enter the top five of the world's largest car manufacturers in 15-20 years. It is possible, but it will cost a lot of money. In a conversation with Bloomberg TV Xiaomi CFO Alain Lam confirmed plans for global expansion, including Europe, but was realistic about future costs.
“At this time, we are more focused on our growth than profitability. We believe that scale will bring profits in the future. (…) We need to continue investing in this business”– said Lam.
- According to Xiaomi's financial report for the second quarter of 2024, the company's automotive division posted an adjusted net loss of 1.8 billion yuan ($252 million) and shipped 27,307 SU7 BEV electric vehicles in China.
- Shipments should pick up in the second half of the year as Xiaomi has completed an assembly line expansion and doubled its production plans for the year, which currently stands at 120,000 units.
Before Xiaomi becomes a leading car manufacturer in Europe and beyond, its main focus will be on China.
“We have global expansion in mind, although we are currently trying to meet all customer demand in China”– concluded Alain Lam.