Xiaomi’s first electric vehicle, the SU7, has become an overwhelming success for the Chinese smartphone company, but it continues to demonstrate its ability to create a buzz in the domestic market.
During an annual conference in July, Xiaomi’s founder, chairman, and CEO, Lei Jun, introduced the SU7 Ultra prototype and has frequently highlighted its performance ambitions on China’s top social media platform, Weibo.
At the challenging Nurburgring in Germany, recognized as the global standard for performance car lap times, the four-door electric vehicle achieved a remarkable time of 6:46.874 – an astonishing 20 seconds quicker than the Porsche Taycan Turbo GT.
This represents a significant challenge for any manufacturer, especially for a company more accustomed to smartphones and consumer electronics.
As stated by Lei Jun, the record was accomplished with British endurance driver David Pittard at the wheel in just one lap – a remarkable single-attempt feat, so to speak.
In the footage from the onboard camera, which can be accessed on YouTube (or simply click above), the SU7 Ultra experienced a temporary power loss about two-thirds into the run. If this issue hadn’t occurred, the lap time could have been even more impressive.
Performance is made accessible
Not merely a publicity stunt, the Xiaomi SU7 Ultra, boasting 1,526hp and a tri-motor setup, is set to enter production early next year, joining the rest of the vehicle line-up. The price is anticipated to be 814,900 Chinese yuan – roughly $114,000/£88,000/AU$174,000 – but like the entire Xiaomi EV collection, it will only be available in China.
This vehicle offers remarkable value for the price, with specifications that read like a car enthusiast’s wish list: carbon ceramic brakes, a 0-62mph acceleration time of 1.98 seconds, a top speed of 217mph, adjustable Bilstein suspension, and an interior lavishly adorned with carbon fibre and Alcantara.
Although the production version will not be as extreme as the car that tackled the Nurburgring, it will still sport a rear spoiler, an updated front splitter with large air intakes, and an active rear diffuser for enhanced downforce.
It is perhaps unsurprising that Xiaomi received 3,680 deposits within the first 10 minutes of the car’s announcement, according to CarScoops.
Xiaomi’s SU7 Ultra secured 3,680 pre-orders just 10 minutes after pre-sales commenced as the company begins demonstrating its technological strength in the EV sector.
Xiaomi (HKG: 1810, OTCMKTS: XIACY) has introduced the production model of its SU7 Ultra, further showcasing its technical capabilities in the electric vehicle arena.
At a product launch event that featured announcements around smartphones, smartwatches, TVs, and washing machines, Lei Jun, the founder, chairman, and CEO, revealed that the powerful SU7 Ultra is now available for pre-order in China at a price of RMB 814,900 ($114,200).
The official launch event for the SU7 Ultra – which is priced nearly four times higher than the standard SU7, starting at RMB 215,900 – will take place in March 2025.
Customers can begin pre-ordering the SU7 Ultra immediately with a deposit of RMB 10,000, which is refundable at any time before the official release.
The vehicle received 3,680 pre-orders within just 10 minutes after the pre-sales began, as announced by Xiaomi’s automotive division, Xiaomi EV, on Weibo.
Characterized by Lei as Xiaomi’s “Dream Car” for himself and performance-oriented enthusiasts, the SU7 Ultra stands out as the most potent variation of the company’s first electric vehicle.
The SU7 electric sedan launched on March 28, featuring three variants – Standard, Pro, and Max – with starting prices of RMB 215,900, RMB 245,900, and RMB 299,900, respectively.
This month alone, over 20,000 units have been delivered, marking the first time this milestone has been achieved, as stated by Xiaomi during today’s event.
During his annual presentation on July 19, Lei introduced the SU7 Ultra prototype, noting that it was designed based on the SU7 for both performance and track use.
Xiaomi sought to challenge the renowned Nurburgring track with the SU7 Ultra prototype earlier this month, but the initial plan was postponed due to rain.
The prototype successfully completed that challenge yesterday, achieving a final lap time of 6 minutes and 46.874 seconds, making it the fastest four-door vehicle to lap the track, Xiaomi announced earlier today.
Xiaomi refined the chassis system for the production SU7 Ultra at the Nürburgring and began validation testing on June 11, according to Lei.
The model is designed for track use and can be operated on the course without modifications, as per the company’s claims.
Xiaomi’s tests indicated that the cooling system of the SU7 Ultra production car did not overheat after two laps at the Nürburgring.
The production version of the SU7 Ultra is equipped with three motors, including two Xiaomi V8s motors, each capable of generating 578 horsepower, along with a V6s motor that delivers 392 horsepower.
This powertrain offers a total output of up to 1,548 hp, enabling the SU7 Ultra to accelerate from 0 to 100 km/h in 1.98 seconds and achieve a top speed exceeding 350 km/h, thereby establishing it as the fastest four-door production vehicle.
The vehicle can go from 0 to 200 km/h in 5.85 seconds and reach 400 km/h in 9.23 seconds.
Constructed on an 800 V high-voltage foundation, this car features a 5.2 C charging multiplier, allowing it to charge from 10 percent to 80 percent in just 11 minutes.
The price for the production version of the SU7 Ultra aligns closely with the projections made by certain Wall Street analysts.
In a report earlier this month, Goldman Sachs estimated that Xiaomi’s SU7 Ultra will sell around 4,000 units next year, with an expected average price of about RMB 800,000, accounting for 5 percent of its electric vehicle revenue.
Xiaomi SU7 Ultra comes with the same tri-motor layout and a battery pack optimized for track performance as the Xiaomi SU7 Ultra Prototype, offering a peak power of 1548PS. It can accelerate from 0 to 100km/h in just 1.98 seconds (without one foot rollout) and has a maximum speed designed to reach 350km/h, making it the fastest four-door mass-produced vehicle. The model is equipped with a cooling system optimized for track use, ensuring that it can complete two laps on the Nürburgring Nordschleife without overheating.
Additionally, it features a top-tier braking system, achieving a stopping distance of only 30.8 meters from 100 km/h to a complete stop. Xiaomi SU7 Ultra is also provided with a peak chassis system fine-tuned for the Nürburgring Nordschleife, which enhances chassis control and raises the control limits. As a four-door “race car,” it is ready for track use right off the production line. Furthermore, the Xiaomi SU7 Ultra boasts various upgrades in areas like smart driving, smart cockpit, safety, and a luxurious experience.
On October 28 (German time), the Xiaomi SU7 Ultra Prototype accomplished its first lap challenge at the Nürburgring Nordschleife, breaking the long-standing seven-year record for the fastest four-door sedan with a time of 6’46″874. This marks the first instance of a Chinese brand earning the title of “The Nürburgring Nordschleife World’s Fastest Four-Door Car.” Xiaomi EV will continue to pursue innovative breakthroughs in electric technology and validate its vehicles through testing at the Nürburgring Nordschleife. The mass-produced array of Xiaomi SU7 Ultra is also set to take on the Nürburgring Nordschleife next year.
The Xiaomi SU7 Ultra is now open for pre-orders, with its official launch planned for March 2025. The pre-order price is set at 814,900 yuan, and a deposit of 10,000 yuan is required to express intent. Those who pre-order will receive priority delivery.
Designed for high performance: From streets to tracks, where aesthetic meets functionality
The design of the Xiaomi SU7 Ultra emphasizes optimal performance, with each new element serving a functional role, devoid of any unnecessary ornamentation. For its exterior, Xiaomi SU7 Ultra evolves from the Xiaomi SU7 Max, featuring an enhanced aerodynamic kit and larger body dimensions. With a length of 5115mm, width of 1970mm, height of 1465mm, and a wheelbase of 3000mm, the vehicle is longer and lower, exhibiting a more aggressive, battle-ready profile.
At the front, the Xiaomi SU7 Ultra showcases an oversized splitter and air dam, along with “U-shaped” air curtains that effectively boost downforce at the front end. A larger opening for the air intake grille has been introduced, increasing the heat dissipation surface area by 10%. An adaptive active rear diffuser has been incorporated, featuring two-speed adjustments that balance wind resistance, downforce, and energy efficiency for day-to-day driving. Additionally, a new carbon fiber fixed rear spoiler (with a wingspan of 1560mm and chord length of 240mm) generates substantial downforce at high velocities. Thanks to this new aerodynamic framework, the Xiaomi SU7 Ultra achieves a maximum downforce of 285kg, comparable to that of supercars.
The interior of the Xiaomi SU7 Ultra highlights sportiness, with improved seat and steering wheel designs. The newly designed sports seats offer enhanced side support, with quicker response times and broader support areas, enabling better body control during high-intensity driving. The seats also display exclusive track-inspired embroidery and an Ultra logo, adding to the sporty look.
The steering wheel has undergone a complete redesign, utilizing a race-inspired flat top and bottom. The material has been upgraded to carbon fiber, with the grip covered in Alcantara®️ microfiber to prevent slipping easily. A yellow centering marker at the 12 o’clock position assists with steering during vigorous handling. This new aesthetic, combined with yellow seat belts and a red Boost button on the steering wheel, creates a race-ready cockpit ambiance within the Xiaomi SU7 Ultra.
The interior materials of the Xiaomi SU7 Ultra have been further improved, extensively featuring Italian Alcantara®️ microfiber across the vehicle, covering over 5m². This material wraps around all seat contact areas, steering wheel grip zones, dashboard stitching, and interior door panels, providing a premium sensation and a more immersive driving atmosphere.
The Xiaomi SU7 Ultra extensively incorporates carbon fiber materials, enhancing its sporty feel while reducing overall weight. Inside, carbon fiber elements can be found in the front-seat back panels, center console, and door sills, which accentuate its athletic look. On the exterior, the Xiaomi SU7 Ultra showcases a large carbon fiber roof of 1.7m²*, cutting down weight by 12kg. Carbon fiber is utilized in 17 different locations, amounting to a total of 3.74m². Additionally, 90% of these components are processed using a high-quality hot press method, ensuring excellent texture and quality.
In terms of peak performance, it is recognized as the world’s fastest mass-produced four-door sedan around the Nürburgring Nordschleife, boasting 1548PS and achieving a 0-100km/h time of 1.98 seconds, with a top speed designed to reach 350km/h.
As Xiaomi’s premier high-performance electric vehicle, the SU7 Ultra features the same power system as its prototype, enabling outstanding performance.
The Xiaomi SU7 Ultra produces a peak output of 1548PS and can go from 0 to 100km/h in only 1.98 seconds (without one-foot rollout). It sets a new standard as the first mass-produced four-door sedan to accelerate from 0 to 200km/h in just 5.86 seconds and can achieve a designed top speed of 350km/h.
The exceptional performance of the Xiaomi SU7 Ultra is backed by leading-edge technology. It utilizes a tri-motor layout that includes two V8s e-motors and one V6s e-motor, marking the first commercial production of Xiaomi’s in-house developed HyperEngine V8s. This HyperEngine V8s can reach a maximum revolution of 27,200rpm, making it the most powerful and highest-revolution main drive e-motor currently on the market.
Xiaomi EV has continuously prioritized research and development (R&D) funding and maintained a focus on innovation. To date, the company has filed for 242 patents related to electric motors and electric power control units, with 128 of these already granted. Xiaomi’s self-developed electric drive also received the “Global New Energy Vehicle Frontier and Innovation Technology Award” during the 2024 World New Energy Vehicle Conference.
Regarding batteries, the Xiaomi SU7 Ultra employs the same track-optimized, high-capacity battery pack as the prototype, featuring the CATL Qilin 2.0 battery. This battery pack is among the most powerful mass-produced options available, capable of a maximum discharge rate of 16C and a maximum discharge power of 1330kW. Even with just 20% battery remaining, the discharge power still reaches 800kW.
The highest charging rate stands at 5.2C, allowing for charging from 10% to 80% to complete in only 11 minutes. With a CLTC range of 630km, it merges high performance with extended reach. Integrating Xiaomi’s CTB battery technology enhances volume efficiency, and the battery pack includes dual large-surface active cooling to ensure optimal heat dissipation and safety.
For electric vehicles to sustain high performance over time, they require exceptional cooling capabilities. The Xiaomi SU7 Ultra has seen upgrades in its cooling system across all components. The efficiencies of the compressor, water pump, cooling fan, and radiator have been significantly improved. The maximum heat dissipation per minute reaches 2.7*10^6J, which is three times greater than the heat dissipation capacity of a standard EV, effectively preventing overheating during two back-to-back laps on the Nürburgring Nordschleife.
The Xiaomi SU7 Ultra comes equipped with a top-tier braking system, featuring carbon ceramic brake discs, high-performance fixed calipers, and specialized brake pads. It can halt from 100km/h to 0 in just 30.8m, and it successfully completes ten consecutive braking tests from 180km/h to 0 without any fading. Furthermore, the Xiaomi SU7 Ultra boasts the largest racing-grade carbon ceramic brake discs available in a sports sedan.
The front brake disc has a diameter of 430mm, the largest size for a carbon ceramic disc on a sedan. In comparison to conventional steel brake discs, carbon ceramic discs can withstand higher temperatures, with a maximum operating threshold exceeding 1300°C, more than twice that of typical steel discs. They are also more resilient against wear and lighter in weight. Their lifespan exceeds 500,000km while reducing the vehicle’s total weight by 57kg.
Additionally, the Xiaomi SU7 Ultra is fitted with Akebono®️ high-performance brake calipers. The fixed calipers have six pistons at the front and four at the rear, with working areas of 148cm² and 93cm² respectively, offering outstanding braking power. The vehicle also features endurance racing-level ENDLESS®️ high-performance brake pads*, which can function at a maximum temperature of 1100°C while maintaining stable braking performance. Moreover, the efficient braking energy regeneration system can achieve a maximum deceleration of 0.6g and regeneration power exceeding 400kW, significantly easing the load on the braking system.
Exceptional driving experience: The track-tuned chassis system of the Xiaomi SU7 Ultra is specifically designed for the Nürburgring Nordschleife, making it ready for the track straight from the factory.
The Xiaomi SU7 Ultra is equipped with a peak chassis system fine-tuned for the Nürburgring Nordschleife, ensuring improved chassis control and an elevated handling capability. As a four-door “race car,” it is track-ready right from the factory.
For its suspension, the Xiaomi SU7 Ultra incorporates dual-chamber air springs and high-performance continuous damping control (CDC), which allow for a broader range of spring stiffness and damping adjustments, making the standard mode more comfortable and the sport mode more dynamic. It also offers track enthusiasts a professional-grade Bilstein®️ EVO T1 coilover shock absorber kit, featuring a maximum spring stiffness of 300N/mm and a peak damping force of 9000N.
With 10 levels for compression and rebound damping adjustment, it significantly enhances the control limits during acceleration, braking, and cornering, providing unmatched support during track cornering. Users have the option to choose between dual-chamber air springs or coilover shock absorbers based on their preferences.
Regarding chassis control, the Xiaomi SU7 Ultra’s tri-motor setup facilitates torque-vectoring control. The torque from the three electric motors is distributed independently and dynamically, with the torque adjusted 500 times per second, greatly improving the vehicle’s handling and stability. When cornering, the system directs more torque to the outer wheels to enhance steering response and speed during corner exits.
If one wheel encounters slippery conditions, the system can instantaneously adjust the torque to the left and right wheels within milliseconds to assist the vehicle in navigating more effectively. This torque-vectoring control system adheres to the highest ASIL-D functional safety standard in the industry, with a maximum fault-coordinated shutdown time of just 14ms, ensuring the vehicle’s safety.
The Xiaomi SU7 Ultra’s chassis system has experienced extensive tuning at the Nürburgring Nordschleife. Beginning June 11, the Xiaomi SU7 Ultra has undergone real-world testing at the Nürburgring Nordschleife, covering over 3,000 kilometers over six weeks of refinement. Utilizing the globally recognized Nürburgring Nordschleife as a testing ground, the Xiaomi SU7 Ultra aims to provide users with optimal handling performance.
The Xiaomi SU7 Ultra comes equipped with a tri-motor configuration, a high-capacity battery pack, an optimally designed cooling system for the track, a carbon ceramic braking system, dual-chamber air springs, and advanced continuous damping control, allowing you to experience the thrill of extreme speed on the track. Users with more demanding track requirements can select top-tier equipment such as Bilstein®️ coilover shock absorbers* and ENDLESS®️ high-performance brake pads*.
Unmatched immersive experience: The exclusive cockpit UI and sporty audio, along with a dedicated Racetrack Master app for competitive driving.
To enhance its outstanding performance and chassis system, the Xiaomi SU7 Ultra has introduced a novel visual and auditory interaction experience through an exclusive Racetrack Master app, delivering an unparalleled immersive experience.
The central control screen, instrument cluster, and various UI elements of the HUD have been upgraded in the Xiaomi SU7 Ultra, resulting in a cooler and sportier exclusive cockpit UI design. The Xiaomi SU7 Ultra features three new sound wave options for sports: super power, super sound, and super pulse, and includes a 40W external speaker to support these sound waves.
Xiaomi SU7 Ultra has developed a robust exclusive Racetrack Master app specifically for track users. This app can showcase all vehicle information, including real-time lap times, vehicle condition, and adjustments to driving modes. When drivers begin racing, they have the ability to set a benchmark lap time that shows the difference from the current lap time in real time, maximizing competitive engagement. Post-race, it provides historical lap statistics and visual analysis of results, along with key metrics like maximum speed, maximum G-force, steering wheel angle, and braking force. Drivers can easily export and share their race footage with just a click.
Currently, Xiaomi EV has partnered with 20 professional race tracks across China, adding track maps and rankings to the dedicated racetrack application. More professional tracks are expected to be incorporated in the future.
The Xiaomi SU7 Ultra presents a range of driving modes suitable for both track safety and everyday use. For track performance, it offers several options including endurance mode, qualifying mode, drift mode, and master custom mode, providing endless driving excitement. For daily driving needs, available modes include beginner mode, economy mode, wet mode, sport mode, and custom mode, among others. To ensure safe operation, drivers must possess driving skills or certification to activate track mode for the first time in the Xiaomi SU7 Ultra. The daily driving modes come with limitations on power and speed.
The Xiaomi SU7 Ultra is a performance powerhouse that resonates with individuals who seek the excitement of driving, aspire for the remarkable, and aim to make the most of each day. It is ideally suited for both everyday driving and racetrack adventures. This luxury tech sedan radiates a robust sense of sophistication and technology, making it appropriate for daily use, whether for business travel or meetings. It boasts top-tier technological features and provides unaltered performance capabilities for high-speed thrills.
Pre-orders for the Xiaomi SU7 Ultra are now open, with the official launch set for March 2025. The pre-order price is established at 814,900 yuan, requiring a deposit of 10,000 yuan to express intent. Those who pre-order will enjoy priority delivery.
The Xiaomi SU7 has made its initial official debut in Malaysia
The Malaysian unveiling of the Xiaomi SU7 took place at Suria KLCC, marking the first look at the company’s inaugural electric vehicle.
However, don’t rush to Suria KLCC in hopes of placing an order for the SU7. Xiaomi has not yet started accepting orders for this EV in Malaysia.
In reality, the launch of the SU7 in this market is not imminent. Xiaomi brought the EV to Malaysia primarily for a technology showcase, akin to Tesla’s approach with the Cybertruck.
The SU7 is featured as part of the Human x Car x Home ecosystem display, which is included in the Xiaomi 14T Series roadshow currently ongoing at Suria KLCC until this Sunday, October 20. Attendees can examine the EV in person at the event, although those who purchase the Xiaomi 14T Series during the showcase will be granted access to a priority lane.
At its core, Xiaomi HyperOS drives the concept of the company’s Human x Car x Home ecosystem, focusing on deep collaboration across its range of smart devices, spanning personal gadgets and home automation to vehicles. This concept represents an evolution of the firm’s earlier Smartphone x AIoT philosophy.
It also underscores the significance of vehicles in Xiaomi’s broader vision, particularly as the company enters the EV market. When Xiaomi first unveiled the SU7 internationally at Mobile World Congress earlier this year, they stated that their ecosystem comprises over 200 product categories, involving 600 million devices globally, covering more than 95% of users’ daily needs.
A Comparison of BYD SEAL EV and Xiaomi SU7
In the rapidly expanding market for new energy vehicles, the question, “Which pure electric vehicle should young buyers consider first?” has gained notable traction. As two eagerly awaited pure electric sedans, the refreshed BYD SEAL EV and Xiaomi SU7 each captivate young consumers with their distinct appeal. Today, we’ll conduct a straightforward comparison based on exterior design, interior features, power, and smart capabilities—key aspects for young buyers—to determine which vehicle better satisfies their preferences.
Exterior Design: Distinctive Styles, Each with Its Own Charm
What do young consumers prioritize when purchasing a vehicle? Naturally, the exterior comes first! The BYD SEAL EV showcases the brand’s hallmark minimalist design, characterized by sleek lines and a closed front grille that underscores its identity as an electric vehicle. Its fastback silhouette, paired with concealed door handles, creates a robust sporty aesthetic. Overall, the BYD SEAL EV’s exterior design adheres to contemporary aesthetic trends while exuding energy and style.
Conversely, the Xiaomi SU7 adopts a subtle sporty design, with its body profile reminiscent of a Porsche Taycan. The vehicle features a notably low design, incorporating semi-concealed door handles and a streamlined body that produces a visually striking appearance. Additionally, the Xiaomi SU7 is equipped with lidar and an electric spoiler, enhancing its uniqueness and technological allure, marking features that are uncommon among traditional brand offerings.
Interior layout: A combination of comfort and technology
Inside, the BYD SEAL EV prioritizes functionality and a sense of advanced technology. From a design standpoint, the new BYD SEAL EV has received a substantial interior makeover, introducing practical elements such as a knee airbag for front passengers, a central airbag for the front row, and soundproof glass for the rear seats, significantly boosting passenger comfort. Furthermore, the BYD SEAL EV includes four-zone voice recognition and 50W wireless fast charging, fulfilling young consumers’ desire for intelligent connectivity.
The Xiaomi SU7’s interior design features a minimalist and sporty aesthetic, emphasizing sustainable materials and high quality. A standout aspect of the central console is the large 16.1-inch display, which delivers exceptional display quality along with top-notch smoothness and functionality. The Xiaomi SU7’s smart cockpit system utilizes HyperOS, creating a deep integration with Xiaomi smartphones that results in an outstanding smart user experience. For fans of the Xiaomi ecosystem, this is truly worth considering.
Power Performance: A Battle of Strength and Efficiency
The BYD SEAL EV has received considerable upgrades in power, beginning with a 231-horsepower rear-wheel-drive motor, while the high-power variant achieves 313 horsepower. Although the driving range has slightly decreased in some models to boost power, the SEAL EV’s overall power performance remains robust. Additionally, the incorporation of the 800V high-voltage platform has significantly enhanced charging speeds, improving the overall user experience.
The Xiaomi SU7 also showcases remarkable power performance. The standard version of this vehicle can accelerate from 0 to 100 km/h in just 5.28 seconds, rivaling entry-level sports cars. In comparison to the BYD SEAL EV, this car’s performance is quite impressive. Furthermore, regarding chassis tuning, the Xiaomi SU7 excels in sporty performance and comfort. It effectively minimizes minor vibrations and offers superb support during cornering, making it feel particularly confident on mountain roads.
Smart Features: A Dual Assurance of Technology and Safety
Now, let’s evaluate the intelligent functionalities. The BYD SEAL EV has received a thorough upgrade in its smart driving system, starting with a monocular perception camera. The smart driving variant features a mix of binocular cameras and lidar, facilitating intelligent driving capabilities both on highways and in urban settings. While it still trails behind leading manufacturers like Huawei, it sufficiently meets the requirements of most consumers.
The intelligent cockpit system of the Xiaomi SU7 also stands out. Its in-car interaction system, based on HyperOS, is a leader in terms of both smoothness and functionality. Additionally, the Xiaomi SU7 provides a variety of smart connectivity options, including direct integration with Xiaomi smartphones and voice control through Xiao Ai (the AI assistant). Users can even manage smart home devices with ease, offering an unparalleled smart experience.
Conclusion:
To summarize, both the BYD SEAL EV and the Xiaomi SU7 possess unique advantages, making it challenging to declare a definitive winner. The BYD SEAL EV has attracted considerable consumer interest thanks to its strong performance, extensive smart driving features, and comfortable seating experience. Conversely, the Xiaomi SU7 appeals to younger buyers with its sleek sporty design, exceptional chassis tuning, and advanced smart cockpit system. Ultimately, the choice between these two models lies in personal preferences and requirements. Whether opting for the BYD SEAL EV or the Xiaomi SU7, each stands out as an impressive electric sedan worth considering for younger consumers.
In a striking development influenced by the evolving business landscape and significant geopolitical factors, the Chinese smartphone and consumer electronics powerhouse Xiaomi has entered the automotive industry. This strategic shift was extensively detailed by Lei Jun, the dynamic founder, chairman, and CEO of Xiaomi, during his speech for the year 2024.
The Trigger for Transformation
This monumental transition was signaled by a significant journey that commenced on January 15, 2021. Xiaomi encountered an unexpected crisis when the United States imposed sanctions against the company. Lei Jun described learning about the sanctions as “a bolt from the blue,” which severely impacted operations and future prospects.
During one of the most crucial board meetings, the question was posed: “If mobile phones can no longer be produced, what will happen to our 30,000 to 40,000 employees?” This marked the beginning of a determined effort to seek alternative paths and create new opportunities, eventually leading Xiaomi to consider entering the automotive sector.
Encouragement and Assistance from Industry Leaders
In that moment of uncertainty, Lei Jun was not alone. Industry colleagues, including Li Bin from NIO and He Xiaopeng from Xpeng Motors, offered him strong encouragement during this challenging time. These pioneers in China’s electric vehicle market were well aware of the challenges and possibilities in vehicle manufacturing and encouraged Xiaomi to pursue this direction.
The Choice to Manufacture Vehicles
Shortly thereafter, Lei Jun embarked on his next significant business venture to enter the car manufacturing sector. On March 20, 2021, Xiaomi made an official announcement regarding its entry into the automobile manufacturing industry, which became Lei Jun’s final entrepreneurial undertaking. The response was overwhelming; in just over three years, Xiaomi Auto garnered approximately 380,000 resumes, reflecting the public’s strong interest and confidence in this new path for Xiaomi.
Strategic Intent of Xiaomi
For Xiaomi, launching a car manufacturing business is more than just diversification—it’s a strategic initiative aimed at leveraging its technological expertise and consumer electronics strengths in the rapidly expanding electric vehicle market. Xiaomi plans to enhance its innovative capabilities in areas such as AI, IoT, and software in conjunction with automotive technology to create intelligent vehicles that deliver seamless user experiences.
Obstacles and Prospects Ahead
While the excitement and backing are palpable, Xiaomi’s entry into the automotive sector comes with its own set of challenges. The company will need to tackle:
- Technological Integration: Smoothly incorporating existing technologies into new automotive uses.
- Market Competition: Intense rivalry from established automotive brands and tech companies venturing into electric vehicles.
- Regulatory Landscape: Adhering to global automotive regulations and standards, which differ from those in the consumer electronics field.
- Lei Jun’s address at the Mi Mixer event marked a definitive turning point for Xiaomi. For the company, stepping into the car manufacturing industry symbolizes more than mere diversification; it represents a transformation in its identity and strategy, influenced by external pressures and internal strengths. The global audience will be keenly watching how Xiaomi accelerates this vision with innovative contributions to the automotive industry.
Xiaomi has received a license from the Chinese government to produce electric vehicles, setting the stage for its third model.
On July 12, the Chinese authorities announced that Xiaomi could independently assemble electric vehicles, meaning the smartphone company has passed the necessary regulations to increase production without relying on its usual car manufacturing partner, BAIC.
This development is significant as the approval from Chinese regulators will facilitate a smooth scale-up in production for Xiaomi, which has increased its delivery goal for the current year to 120,000 units from 72,000 and aims to attract a broader customer base with future models.
According to the public registration filings released by China’s Ministry of Industry and Information Technology (MIIT) on July 12, Xiaomi is now recognized as one of the “all-electric passenger car manufacturers.”
The company has also revised its registration filing for its initial consumer vehicle, the SU7, with the country’s main industry regulatory authority, now featuring the “Xiaomi” branding on the back instead of “Beijing Xiaomi” as was previously shown in the MIIT images.
The well-received sedan has consistently been produced at Xiaomi’s facility in the Beijing Economic and Technological Development Zone, but its production application was initially submitted under the name of a BAIC subsidiary, TechNode reported.
Xiaomi awaited final clearance from MIIT after receiving initial approval from China’s state planning authority for EV manufacturing, as reported by Reuters last August, while also seeking a partner for its second vehicle production. Its plant in Beijing has an annual production capacity of 150,000 cars.
For context, Xiaomi reached the milestone of 10,000 units sold by June, marking its third month of deliveries, contributing to a year-to-date volume of nearly 26,000 units for its competitor to Tesla’s Model 3.
In May, President Lu Weibing expressed to investors that the target for car deliveries this year is 120,000, which exceeds the initial goal of 72,000 units disclosed by CEO Lei Jun during Xiaomi’s annual investor conference in April, as reported by CNBC.
Starting from RMB 215,900 (equivalent to $29,881), the stylish all-electric Xiaomi SU7, resembling the Porsche Taycan, has achieved notable success in China, amassing 88,898 pre-orders within 24 hours of its launch on March 28. The company has faced pressure to ensure timely deliveries since then.
Additionally, Xiaomi is racing to launch its second vehicle, an all-electric SUV, in the first half of next year, while plans indicate that the third model may be an extended-range hybrid (EREV) aimed at Chinese families, anticipated for release in 2026.
Xiaomi’s impressive growth in 2024 is evident in its interim financial report for the first half of the year, showcasing significant success and rapid expansion across its main business areas, reinforcing its global position in smartphones, AIoT, and smart devices. With strong financial outcomes, record-setting shipments, and ambitious growth strategies, Xiaomi is gearing up for a prominent market presence for the rest of the year.
In financial highlights, Xiaomi’s operating income over the first six months of 2024 increased to 164.395 billion yuan, reflecting a substantial year-on-year growth of 29.62%. This strong revenue increase was accompanied by a 17.86% growth in net profit, reaching a total of 9.28 billion yuan. These results demonstrate Xiaomi’s capacity to leverage its diverse product offerings and global growth.
The mobile phone and AIoT sectors remain crucial for Xiaomi, generating 158 billion yuan in revenue—an increase of 24.6% compared to 2023. Notably, smartphone shipments achieved an impressive total of 82.2 million units, significantly boosting the company’s overall financial success. Revenue from smartphones rose by 29.9%, from 71.6 billion yuan in the same period last year to an outstanding 93 billion yuan for the first half of 2024.
Xiaomi’s IoT and consumer product sector, encompassing smart home devices and wearables, also experienced robust growth. This segment’s revenue increased by 20.6% year-over-year, totaling 47.1 billion yuan, with the number of connected IoT devices exceeding 822.2 million, reflecting a 25.6% rise compared to last year.
In addition to its established strengths in mobile and IoT, Xiaomi has seen advancements in its innovative pursuits, including smart electric vehicles. These segments generated 6.4 billion yuan in revenue, highlighting Xiaomi’s strategic investments in emerging fields. The company’s entry into the electric vehicle market has yielded the delivery of 27,367 units within just six months, underscoring its effective diversification strategy.
Wearables also performed exceptionally well in the first half of the year, with revenue soaring by 37.4% year-on-year, mostly driven by the growing popularity of smartwatches and TWS headphones in global markets.
Xiaomi’s smart home devices experienced notable growth of 40.5% year-on-year. This increase was particularly linked to a surge in shipments of air conditioners, refrigerators, and washing machines within mainland China.
Global Expansion and User Growth
Xiaomi is extending its reach, both in terms of user base and physical retail locations. The company now boasts 675.8 million global monthly active users, reflecting an 11.5% year-on-year rise. Xiaomi’s shift toward innovative retail strategies has resulted in over 12,000 physical stores in mainland China as of June 30, 2024.
Additionally, Xiaomi’s revenue from international markets amounted to 75.9 billion yuan, which constitutes 46.2% of its total revenue, underscoring the brand’s robust international presence. Its ventures into various regions have proven successful, establishing Xiaomi as a leading player in consumer electronics globally.
Conclusion: A Pivotal Year of Innovation
2024 is turning out to be a significant year for Xiaomi Group, marked by dramatic revenue growth, innovative product releases, and entry into new sectors such as electric vehicles. The company’s mobile and AIoT divisions continue to excel, bolstered by strategic investments in innovation and retail. As Xiaomi broadens its global ecosystem, it’s clear that the company’s ambition of creating a connected world of smart devices is nearing realization. The next six months will be crucial as Xiaomi ventures into new areas and strengthens its presence in key global markets.
On Monday, Xiaomi Corp announced its goal to deliver 130,000 electric vehicles this year, increasing its forecast for the third time due to a 30.5% rise in third-quarter revenue.
CEO Lei Jun revealed via social media that the electronics giant was updating its target to deliver 120,000 units of its first EV, the SU7 sedan, as demand continues to climb. This new goal significantly surpasses the initial aim of 76,000 set at the launch of the SU7 earlier this year.
The company introduced the car in March, taking design inspiration from Porsche, and entered the competitive Chinese EV market with an appealing price point of under $30,000 for the base version, which is $4,000 less than Tesla’s Model 3 in China.
Sales of electric and plug-in hybrid vehicles in China have now accounted for over half of total sales in the largest auto market globally. In October, this category saw a 56.7% increase compared to the previous year, marking the fourth consecutive month battery-powered vehicles, including plug-ins, outperformed gasoline cars.
To meet the rising demand, Xiaomi has increased factory production shifts since June and has launched the premium SU7 Ultra model which is priced over $110,000.
Following the earnings call, Xiaomi’s President Lu Weibing mentioned that their factory currently has the capability to produce 20,000 cars per month, with potential for further expansion.
“Our investment remains significant as we continue enhancing our hardware and software. The ultimate delivery numbers are not the main focus; we are maintaining strong investments and prioritizing R&D for new models,” he stated.
One area of focus for Xiaomi involves the development of autonomous driving technology.
AUTO BUSINESS STILL OPERATING AT A LOSS
Revenue for the quarter ending September 30 was reported at 92.5 billion yuan ($12.77 billion), surpassing an LSEG consensus estimate from 15 analysts which projected 91.1 billion yuan.
According to Huatai Securities, Xiaomi is expected to deliver 400,000 electric vehicles by 2025, at which point electric cars may contribute approximately one-fifth of revenue, compared to the current 8%.
However, Xiaomi’s automotive division is still facing losses. This segment reported an adjusted loss of 1.5 billion yuan for the quarter with a gross profit margin of 17.1%.
During this quarter, Xiaomi retained its status as the world’s third-largest smartphone manufacturer, with shipments reaching 42.8 million units, a 3% increase, capturing 14% of the market as reported by research firm Canalys.
Lu indicated that the company intends to grow its offline retail outlet count in mainland China from 13,000 to 15,000 by year-end, and aims for 20,000 by next year, while making substantial investments in technology to increase market share.
Xiaomi reported a 4.4% rise in adjusted net profit to 6.25 billion yuan, exceeding a consensus estimate of 5.92 billion yuan.
