Xiaomi to Launch Electric Vehicle Next Month
Huawei Selling Electric Cars Cheaper Than Tesla
Chinese IT Companies Enter EV Market Faster Than Apple
Concerns Apple May Lose Competitive Edge
Market Focuses on When Apple Car Will Be Released
Chinese smartphone companies are closing the gap with Apple by consecutively launching electric vehicles equipped with advanced technologies. Their strategy is to secure customers ahead of Apple’s full-scale entry into the electric vehicle market and gain market dominance. The so-called 'Apple Car,' Apple’s electric vehicle shrouded in secrecy, is expected by the market to be released only in 2026.
The Wall Street Journal (WSJ) reported on the 28th (local time) that "Apple is being overtaken by Chinese IT companies Xiaomi and Huawei in the automotive sector."
Tang Jin, Chief Research Officer at Mizuho Bank, said, "China’s giant smartphone companies now recognize the importance of automobiles and are making smart cars before Apple releases its vehicle."
Xiaomi announced plans to officially launch its first electric vehicle, the 'SU7,' next month. The SU7 has a maximum driving range of 800 km on a full charge. Xiaomi also developed the Xiaomi Super Motor V8s, an electric motor with a performance of 27,200 rpm (revolutions per minute). Lei Jun, Xiaomi’s Chief Executive Officer (CEO), stated at the 'Xiaomi Electric Vehicle Technology Presentation' that "it will be manufactured using a body casting method similar to Tesla’s" and "uses semiconductors from Nvidia and Qualcomm, and parts from Bosch." Xiaomi aims to create a 'dream car' that can stand shoulder to shoulder with Porsche and Tesla and become one of the world’s top five automakers within the next 15 to 20 years.
Huawei was the company that launched an electric vehicle before Xiaomi. In 2021, Huawei partnered with automaker Seres to release the luxury sport utility vehicle (SUV) electric model 'AITo,' and in March of this year, it introduced the mid-size SUV 'AITo M5.' Recently, to build its smart car business, Huawei signed a memorandum of understanding last month to establish a new joint venture with Changan Automobile. WSJ explained, "Huawei’s automotive strategy is rooted in smartphones," adding that "these models come with Huawei’s operating system and driver assistance software, allowing customers to synchronize settings and applications between their phones and cars."
WSJ pointed out that as Chinese IT companies continue to launch electric vehicles, electric cars are becoming 'smartphones on wheels.' Considering the U.S.’s strengthened sanctions and containment measures against China and the rising status of Apple’s iPhone, electric vehicles could become a new growth engine for Chinese IT companies. In terms of price competitiveness, electric vehicles developed by Chinese IT companies are evaluated to be more competitive than Tesla and BMW. WSJ noted, "The starting price of Huawei’s electric SUV in China is $70,000, while Tesla’s Model X starts at $100,000."
Market attention is focused on when Apple will release the 'Apple Car.' As Chinese IT companies pursue a strategy of securing market dominance by preemptively launching electric vehicles that integrate with smartphones, there are concerns that Apple might fall behind. However, since Apple’s partners are entering the electric vehicle business, some analysts believe Apple’s market dominance is only a matter of time.
WSJ pointed out, "One reassuring factor for Apple is that its suppliers in China and Taiwan are also entering the electric vehicle business," adding, "This means that if the iPhone manufacturer decides to make cars, it can immediately access partners and technology." The companies mentioned by WSJ include iPhone assemblers Luxshare and Foxconn. China’s electric vehicle company BYD, which ranked first in global electric vehicle sales this year, is also known to assemble some Apple products and supply parts.
Dan Ives, an analyst at Wedbush Securities, predicted, "Apple probably won’t wait too long," and expects the Apple Car to be released around 2026.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
