Chinese consumer electronics company Xiaomi revealed Thurs., Dec. 28, 2023, its long-awaited electric car, but declined to share its price or specific release date.
CNBC | Evelyn Cheng
BEIJING – Chinese smartphone company Xiaomi believes it’s identified a consumer niche that will pay up for its upcoming electric car in a fiercely competitive market.
“We think it’s a good starting point for us in the premium segment because we have already 20 million premium users in China based on the smartphone,” Xiaomi Group President Weibing Lu told CNBC ahead of the car’s international reveal at the Mobile World Congress in Barcelona, which kicks off Monday.
“I think the initial purchases will be very overlapped with the smartphone users.”
He said the company considered a range of price points, from entry level to luxury, for a car it’s spending $10 billion to develop.
Xiaomi revealed its SU7 electric car in China in late December but has yet to announce a specific price. Lu said a formal release would come “very soon” and indicated domestic deliveries would start as soon as the second quarter.
The Beijing-based company is a market leader in the smartphone industry, ranking third in global shipments behind Apple and Samsung, according to Canalys. Data from the tech market analysis firm showed that Xiaomi captured about 13% of the global market and shipped 146.4 million phones in 2023.
The company in recent years has also branched out into TVs and home appliances, which are smartphone-controllable and often sport a sleek, white design. Most of Xiaomi’s revenue is from phones, with just under 30% coming from appliances and other consumer products.
Xiaomi has generally been known for more affordably priced products. That’s raised doubts about whether it can sell an electric car – promoted as a rival to Porsche – in a market where even established EV giants like BYD are slashing prices.
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