Foreign Media Also Evaluate "Aggressive Pricing Policy"
Criticism on Completeness and Expectations of Additional Discounts
China's Xiaomi has revealed the price of its first electric vehicle, the SU7 (Chinese name: Suchi), after a long period of 'hunger marketing.' The base model is priced at 215,900 yuan (approximately 40.16 million KRW), slightly lower than the comparable Tesla Model 3 (245,900 yuan). The market response is mixed, with praise for its competitive price relative to performance and support for domestic electric vehicles, while some criticize its build quality and express concerns that the price may be reduced again in the future.
Lei Jun, Xiaomi's chairman, personally held the launch event for the first electric sedan SU7 on the evening of the 28th at the Beijing Bailun Yichuang International Conference and Exhibition Center, announcing these details. The SU7 will be sold in three versions: Standard, Pro, and Max, priced at 215,900 yuan, 245,900 yuan, and 299,000 yuan respectively. The Standard and Max versions will be officially delivered next month, while the Pro version will begin official delivery at the end of May.
On the morning of the 25th, the SU7 displayed at the Xiaomi store inside the Heshenghui Shopping Center in Chaoyang District, Beijing, China. Photo by Kim Hyunjung
Price Lower Than Market Expectations... 50,000 Orders Surpassed Within 27 Minutes of Launch
The initial sales response has been predominantly positive. According to Xiaomi, the SU7 surpassed 10,000 orders within 4 minutes of its 10 PM launch on the 28th, 20,000 orders within 7 minutes, and 50,000 orders within 27 minutes.
Most notably, setting the market price lower than expected appears to have been effective. Xiaomi positioned the Model 3 and Porsche Taycan (starting at 129.9 million KRW) as competitors to the Standard and Max versions, making the entry barrier lower. Especially, before the launch, Chairman Lei positioned the SU7’s price as 'under 50 yuan' on his social media, making the actual revealed price feel even more attractive. Foreign media such as Bloomberg also described it as an "aggressive pricing strategy," praising the competitive price relative to specifications.
On the evening of the 28th, when Lei Jun, Xiaomi's chairman, revealed the price, real-time chat was flooded with reactions such as "Awesome (6666, a homophonic wordplay with 'niu')" and "Great (牛逼, niubi)." (Photo by Live Broadcast Capture)
The policy of offering free vehicle smart refrigerators, premium speakers, and leather seats to customers who order before April 30 also likely had an impact. For the Pro specification, these options are provided free regardless of the order time.
Additionally, Xiaomi’s typical 'hunger marketing,' which limits information to increase curiosity and interest, is considered to have been effective. Xiaomi first revealed the SU7’s exterior photo online in November last year, then showcased key specifications and limited interior and exterior details at a technology conference a month later. On the 25th of this month, only reservation holders were allowed to see the actual vehicle on-site, but they were not permitted to sit inside or open the doors to view the interior directly. At the conference starting at 7 PM on the 28th, most of the time was spent explaining specifications, and the price was only revealed around 8:40 PM as the event was concluding.
"If It Sells Well, It Might Even Create Jobs" - A Wave of Patriotic Consumption
The SU7, launched shortly after Apple announced it would abandon the development of the 'Apple Car,' seems poised to reignite a wave of 'patriotic consumption' within China. During the live broadcast of the launch event, the chat window was filled with enthusiastic comments such as "Lei Jun is amazing," "This is a big hit," and "I will definitely buy it" even before the price was announced. After the price reveal, supportive comments appeared online, saying, "It’s hard for me to afford it with my income, but I hope it sells well," and "If domestic electric vehicles sell well, Xiaomi might even create more jobs."
However, some critics have expressed concerns about the vehicle’s build quality and Xiaomi’s policy potentially leading to further price reductions. An internet blogger visited multiple Xiaomi stores to inspect the SU7 in person and posted a video highlighting issues such as misaligned seams and height differences between the upper and lower parts of the vehicle, sparking controversy. Comments mocking Xiaomi’s discount policy included, "In a year, the price will drop to 199,900 yuan, and in two years, to 99,000 yuan, so wait before buying."
Since test drive events have not yet started, opinions on the actual vehicle performance are mixed. The SU7 adopts a dual-motor Quattro drive system and offers battery options of 101 kWh and 73.6 kWh capacity. The standard model’s full charge range is 700 km. It is said that a 15-minute charge provides 350 km of driving range, and even a 5-minute charge allows for 138 km. In addition to previously revealed colors such as Gulf Blue, Olive Green, Ash Gray, and Violet, the SU7 will be available in a total of nine colors, including Orange, Deep Blue, Diamond Black, and Pearl White.
Meanwhile, the event attracted attention as chairmen and CEOs from competing companies in the same industry sat together in a row to watch. Li Bing, chairman of Weilai Automobile (NIO), He Xiaopeng, chairman of Xiaopeng, and Li Xiang, CEO of Li Auto, attended as guests. Lei Jun expressed gratitude to them on-site, saying, "Thank you. I received a lot of advice and support that helped me not to give up."
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