Xiaomi EV deliveries have officially commenced, with the tech giant rolling out its first car, the SU7, to customers after receiving an impressive tally of over 100,000 orders.

Known for its smartphones, Xiaomi’s entry into the electric vehicle market signifies a bold expansion of its product line. They announced their entry into the electric vehicle sector in March 2021, with a commitment to invest $10 billion in this new venture over the next decade. The company’s ambitious entry into the EV market is a testament to its innovative approach and dedication to greener technologies.

Market Buzz and Production Milestones

The initial Xiaomi EV deliveries cover the first 5,000 SU7 vehicles, mirroring the intense market interest and Xiaomi’s dedication to fulfilling consumer expectations. In an increasingly crowded Chinese EV market, Xiaomi’s debut stands out.

Despite facing challenges such as pricing competition and sluggish demand, Xiaomi’s robust financial position and its acumen in smart technology are anticipated to provide it with a strategic advantage, particularly in the realm of smart dashboard technology.

High Demand Leads to Extended Wait Times

Xiaomi encountered an overwhelming demand for the SU7, with 88,898 pre-orders placed within the first day of sales. This surge has led to wait times ranging from four to seven months for potential customers.

The first 5,000 units, known as the “founders edition,” feature exclusive accessories for early adopters. Xiaomi’s founder and CEO, Lei Jun, announced via social media that these units have started being delivered across 28 cities in China, beginning with a special ceremony at its Beijing factory.

Financial Outlook and Industry Impact

Despite the enthusiastic market reception, financial analysts urge caution concerning the SU7’s profitability. Citi Research predicts Xiaomi might incur an average loss of 68,000 yuan ($9,400.96) per vehicle, leading to a net loss of 4.1 billion yuan ($566.82 million), based on an expected sales volume of 60,000 units for the year.

Lei Jun’s decision to venture into the EV market in 2021 was part of a larger plan to invest $10 billion in the automotive industry, a project he describes as his final major entrepreneurial endeavor.

Following the SU7’s release, other Chinese EV manufacturers have responded with price reductions and subsidies, further heating up the competition. Citi analysts forecast the 200,000 to 300,000 yuan price bracket will see approximately 240 EV models by 2024, marking a nearly twenty percent increase from the prior year and emphasizing the competitive environment Xiaomi has entered.

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