Xiaomi Electric Vehicle Finally Goes on Sale... Stock Price Rises 10% Intraday

Chinese Xiaomi, nicknamed the 'Accidental Continental Success' for its high cost-effectiveness products, will start selling electric vehicles within this month.

On the 12th, Xiaomi announced on China's leading social networking service (SNS) Weibo that from the 28th, its first electric vehicle series, the ‘SU7’, will be available for purchase in 29 cities across China.

The price, which is the focus of market attention, was not disclosed. However, local consumers expect it to be offered at a price lower than Chinese competitors such as BYD, Nio, and Li Auto.

This launch comes about three months after Xiaomi unveiled its electric vehicle at the end of last year. According to Xiaomi, the SU7 can accelerate to 100 km/h in just 2.78 seconds. The maximum driving range is 800 km on a single full charge. Xiaomi’s CEO, Lei Jun, stated at the technology presentation that the company aims to become one of the world’s top five automobile manufacturers within the next 20 years.

The key issue is how much Xiaomi can lower the price. The current electric vehicle market is in a difficult situation due to a slowdown in global demand and a price war among industry players. In particular, since the Chinese government completely abolished electric vehicle subsidies of up to 60,000 yuan per vehicle starting in 2022, local consumer purchasing power is considered weaker than before.

Bloomberg Intelligence estimated the average price of the SU7 to be between 220,000 and 260,000 yuan (40 million to 47 million KRW). The first-year sales volume is expected to be between 30,000 and 50,000 units. Stephen Cheng, an analyst at Bloomberg Intelligence, predicted, “The SU7, which has just started sales, could increase Xiaomi’s revenue by up to 4% this year,” adding, “It could be a long-term growth driver.”

Meanwhile, Xiaomi’s stock price surged more than 10% intraday on the Hong Kong Stock Exchange following the news of the electric vehicle sales launch.