Xiaomi, a Chinese consumer tech behemoth, will unveil its first EV at a press conference in Beijing, entering a fiercely competitive sector of the world’s largest automobile industry.
China’s EV sector has grown in recent years, fueled by purchasing subsidies that will expire by the end of 2022, and dozens of Chinese manufacturers are engaged in a strong price war to gain an advantage in a crowded market.
Xiaomi is known around the world for its inexpensive smartphones and stylish home appliances, and CEO Lei Jun claims the SU7 EV is “putting its reputation on the line” to compete with Chinese automobile giant BYD and Elon Musk’s Tesla.
Xiaomi is the world’s third-largest smartphone manufacturer, and its expertise in that market has influenced its EV strategy. Xiaomi’s president, Lu Weibing, told CNBC last month that approximately 20 million customers used the company’s premium smartphones, which helped it price the SU7.
China is presently the world’s greatest emitter of greenhouse emissions, yet officials intend for domestic automobile sales to consist primarily of electric and hybrid models by 2035.
The SU7’s release comes only days after BYD, the world’s top EV seller, reported record yearly profits as it continues its rapid development into Southeast Asia, Latin America, and Europe.
In a message accompanying the release of the results, BYD CEO Wang Chuanfu recognized that the year had not been without challenges.
“At the beginning of the year, the recovery of automobile consumption was relatively lagging behind, affected by the switch in promotional policies and market price fluctuations.”
