Xiaomi, the Chinese tech giant, is making its mark in the electric vehicle (EV) market with the introduction of its first offering, the SU7 performance sedan. After investing a substantial RMB 10 billion yuan in the automotive industry in March 2021, Xiaomi is now gearing up for mass production of the SU7, which is expected to begin in mid-to-late February. The company plans to produce around 2,000 units per month starting in March.
Xiaomi's Competitor to Tesla's Model S
Positioned as a direct competitor to Tesla's Model S, the SU7 comes with impressive specifications. It boasts acceleration in under 3 seconds and features an 800V fast-charging architecture. Despite Xiaomi's reputation for budget-friendly products, the SU7 is competitively priced in two trims: the SU7 RWD at $35,200 and the SU7 AWD at $55,000. The top trim, equipped with a high-nickel 101 kWh battery from CATL and a powerful 495kW (664 hp) output, is expected to exceed $50,000.
Advanced Technology and Features
The SU7 is built on Xiaomi's internally developed 800V electric vehicle architecture called Modena. It incorporates the advanced Hyper OS for smart functions and connectivity. The vehicle also includes self-driving functionality, utilizing high-resolution cameras, LiDAR, and ultrasonic sensors. This showcases Xiaomi's commitment to cutting-edge technology in the automotive sector.
Justifying the Cost
Despite the pricing ranging from $35,200 to over $50,000, Xiaomi justifies the cost by emphasizing the inclusion of advanced features, high-performance components, and a novel Hypercasting manufacturing method. The company has invested a significant $10 billion in research and development expenses and has employed a dedicated team of 3,400 engineers for the development of the SU7.
Overcoming Challenges and Future Plans
As Xiaomi faces the challenges posed by the Chinese New Year holiday, the company expects increased communication and adjustment costs. However, with most of the research and development and validation testing completed before the Start of Production (SOP) stage, Xiaomi aims to efficiently overcome these challenges. The SOP phase typically sees monthly production surpassing 2,000 vehicles, marking a crucial transition from R&D to the production department.
Xiaomi has ambitious plans for the future, aiming to complete capacity ramp-up by mid-2024. The company expects monthly production to exceed 10,000 units in July 2024. Despite deviating from Xiaomi's traditional midrange pricing, the competitive positioning of the SU7 in the modern EV market reflects the company's determination to make a significant impact in the automotive industry. Consumers and industry enthusiasts eagerly await the official launch date of the SU7.
Source: mi.com
