Xiaomi’s maiden EV, selling at a loss, turbocharges price war forcing China’s small players out of business
- The SU7 hit the market on March 28, three years after Xiaomi ventured into electric vehicles to diversify its business
- The SU7 is a ‘game-changer because it is … forcing existing carmakers to adjust their pricing strategies,’ says analyst
Strong sales of smartphone vendor Xiaomi’s first electric car have exacerbated a price war in the sector that is squeezing the profit margins of most players in China.
The three variants of the SU7 are priced at 215,900 yuan (US$29,850), 245,900 yuan and 299,900 yuan.
Goldman Sachs said in a research note on April 1 that it believed the fully electric sedan “is highly competitive and demonstrates Xiaomi’s capabilities of becoming a potential price leader in the market rather than a price follower.”
The SU7, fitted with intelligent features such as an autonomous driving system and digital cockpit, hit the market three years after Xiaomi ventured into electric vehicles (EVs) to diversify its business.
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It boasts sports-car level performance, which is powered by Xiaomi’s HyperEngine electric motor that produces up to 21,000 revolutions per minute.
