China’s EV Newcomer Xiaomi Sells Nearly 300,000 SUVs In An Hour

Known as “China’s Apple,” Xiaomi is a tech giant that has made waves in the electric vehicle (EV) market with the YU7, its first SUV. Within an hour of its launch, the company had nearly 300,000 pre-orders. According to founder Lei Jun, the five-seater YU7, which starts at 253,500 yuan ($54,000), has received a lot of interest. In the first two minutes, there were 128,000 lock-in orders and 196,000 paid pre-orders. Lei called the launch a “miraculous” event for the auto industry.

After its initial entry into the automotive industry with the SU7 EV model, Xiaomi is making its second foray into the market with this incredible demand. With a price difference of almost 4%, the company’s new car has a big advantage over Tesla’s Model Y. The Model Y is still the best-selling SUV in China, with a starting price of 263,500 yuan ($56,000. Strong domestic demand and Xiaomi’s aggressive pricing strategy indicate that the Chinese EV market is becoming more competitive.

Xiaomi has received a lot of government support for its quick entry into the EV market. Beijing’s goal of making China a global leader in electric vehicles was in line with the company’s earlier announcement of a $10 billion investment spread over ten years. Experts like Marina Zhang from the University of Technology Sydney pointed out that Xiaomi’s entry into the automotive industry was aided by local incentives, land, and policy support.

Despite the positive reaction, some analysts warn that software uniqueness, global expansion, and production execution are key to Xiaomi’s success in the EV market. Even though the YU7 might bring intense competition, it is unlikely to take on well-established firms like BYD and Tesla right away. Additionally, after a fatal crash involving Xiaomi’s previous model, the SU7, in March, which sparked industry safety discussions, worries about autonomous driving technology were raised.

However, Xiaomi’s explosive rise in the EV market is a noteworthy accomplishment that underscores the fierce competition and inventiveness influencing China’s EV market.