The Chinese technology giant, Xiaomi, has announced that it will commence deliveries of its inaugural electric vehicle (EV) this month, marking its initial venture into the fiercely competitive automotive sector.
The car’s price is set to be revealed on March 28th.
China’s fifth-largest smartphone manufacturer has disclosed that it operates 59 stores across 29 cities nationwide to facilitate orders.
This development occurs amidst heightened competition in China’s automotive industry, particularly with companies such as BYD and Tesla, in the world’s largest car market.
During the unveiling of the Speed Ultra 7 (SU7) last year, Xiaomi’s CEO Lei Jun expressed the company’s ambition to rank among the top five car manufacturers globally.
The tech giant has committed to investing $10 billion (£7.8 billion) in its vehicle division over the next decade.
Jun highlighted the SU7’s “super electric motor” technology, capable of outpacing certain Tesla and Porsche EVs.
Xiaomi anticipates that the car’s integrated operating system, compatible with its phones and other devices, will resonate with its existing customer base.
As one of the few new contenders in China’s electric car market to receive approval from authorities, Xiaomi enters the arena as officials aim to regulate the influx of new entrants.
The SU7 will be manufactured by a subsidiary of the state-owned carmaker BAIC Group at a Beijing facility capable of producing up to 200,000 vehicles annually.
Xiaomi’s entry into the automotive sector coincides with an escalating price competition in China’s EV market. Tesla, led by billionaire Elon Musk, has significantly reduced the prices of its vehicles in China in recent months, while local competitors like BYD have also implemented price cuts.
Following today’s announcement, Xiaomi’s shares surged by over 10% in Hong Kong.