Xiaomi's venture into the electric vehicle sector seems to be yielding significant results. The debut of their first model, the SU7 EV, has been a remarkable success in China, leading to a substantial increase in production capacity by the tech giant.
Production Capacity Boost
Reports indicate that Xiaomi has urged its suppliers to elevate production levels to an impressive 10,000 units per month, particularly focusing on the higher-end versions of the SU7. This decision follows the unexpected surge in initial sales figures for the EV.
Production Challenges and Response
Initially, the production plan aimed for 3,000 vehicles monthly by March, gradually scaling up to a consistent 6,000 monthly by the close of 2024. However, the overwhelming demand for the SU7 has necessitated a reevaluation of these targets to prevent potential delays in deliveries.
Market Response and Stock Performance
Acknowledging the production challenges, Xiaomi Motors has committed to enhancing production capacity and expediting deliveries. Presently, delivery times for various SU7 models span from 19 to 32 weeks, a period of up to 7 months. This surge in demand has also translated into a notable uptick in Xiaomi's shares on the Hong Kong stock market, initially surging by nearly 15% and finally settling at a 10.17% increase.
Strong Market Debut
The launch of the SU7 witnessed an impressive 88,898 units sold within the first 24 hours. Reports from a reputable Chinese car blogger on Weibo suggest that each store received an average of 1,800 to 2,000 orders, with a reservation rate of 35-40%.
This successful introduction of the Xiaomi SU7 hints at a bright future for the company in the automotive industry. While the sustainability of this momentum and Xiaomi's potential as a key player in the global EV market remain uncertain, these initial accomplishments serve as a promising indicator of things to come.
