(MENAFN) Xiaomi, renowned for its smart consumer electronics in China, is venturing into the country's burgeoning yet crowded electric car market. The tech company is set to commence orders for the SU7, a sleek four-door sedan, following a launch event featuring founder Lei Jun in Beijing on Thursday evening. Analysts anticipate it to be priced around 300,000 yuan (USD40,000).
With government subsidies fueling growth, China has emerged as the world's largest electric vehicle market, attracting numerous new entrants into the industry. While most sales remain domestic, Chinese manufacturers are expanding into overseas markets with competitively priced models, posing a potential challenge to established European, Japanese, and American auto giants.
Lei Jun appears undeterred by this challenge, expressing during the SU7 unveiling in December that Xiaomi, headquartered in Beijing, aims to secure a position among the world's top five automakers within 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 cited as saying in a company statement.
Founded in 2010, Xiaomi is stepping into an already overcrowded market, which analysts predict will undergo a shakeout in the upcoming years, potentially leading to weaker startups being sidelined.
Fitch Ratings anticipates that the combined share of electric vehicles (EVs) and hybrids in China's auto sales will likely increase to 42 percent to 45 percent this year, compared to 36 percent in 2023. However, the agency cautioned in a December report that intense competition could exert pressure on automakers' short-term market share and profitability.
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