Xiaomi has made a bold entry into the electric vehicle market by delivering over 20,000 units of its SU7 electric sedan in October. This rapid escalation in production showcases Xiaomi's ambition in the EV sector.
Xiaomi aims to deliver a total of 100,000 SU7 vehicles by the end of November, demonstrating its commitment to establishing a foothold in the world's largest EV market. Xiaomi's foray into the automotive industry began in 2021, and it has already delivered over 75,000 SU7 cars to date.
Xiaomi's swift progress in the EV market is notable, as it has achieved the milestone of 100,000 electric vehicles produced in a much shorter time compared to its competitors. Analysts recognize Xiaomi's potential impact on the EV market, with its gross profit margins for electric vehicles comparable to those of other established players.
Xiaomi has also introduced a high-end sports version of the SU7, the SU7 Ultra, which has garnered strong initial interest and is expected to boost sales of the premium SU7 Max.
Citi analysts have revised their forecasts for Xiaomi, projecting that the company will deliver 250,000 cars next year. Despite Xiaomi's promising start, the EV market in China remains highly competitive, with established players like Tesla dominating sales. Xiaomi's current strategy focuses on the domestic market, with plans for international expansion in the future. As Xiaomi continues to innovate and navigate the complexities of the EV landscape, its performance will be closely monitored by investors and industry observers.