Xiaomi CEO Lei Jun has just lately shared some attention-grabbing tidbits with the media, providing a extra exact timeline for the tech big’s automotive arm’s launch of its tri-motor SU7 Extremely. Moreover, the billionaire CEO spoke about Xiaomi Car’s willingness to lose cash upfront to broaden its portfolio to markets in Europe and grow to be a top-five automaker on the planet.
Changing into a prime 5 automaker on the planet is a lofty purpose for an automaker that may be a mere three years outdated, however Xiaomi Car has the backing of an electronics manufacturing powerhouse in Xiaomi Inc. in addition to the assist of its CEO Lei Jun, who has already pledged to speculate $10 billion within the BEV improvement enterprise.
Xiaomi is making an attempt to do one thing Apple teased however might by no means actually get shifting on – transitioning from a smartphone behemoth to a bonafide competitor within the EV market. Xiaomi Car’s observe file is brief however fairly promising up to now.
The Chinese language automotive arm developed its flagship mannequin, the SU7 sedan, sooner than anticipated. The SU7 launched in late 2023 and locked in over 50,000 orders through the first 27 minutes it was on sale. The corporate has since needed to bolster its meeting strains and manufacturing targets to maintain up with demand, all whereas growing further BEV fashions as an encore.
In July, Xiaomi introduced a brand new 1,548hp Extremely trim of the SU7, coming within the first half of 2025. Xiaomi Car additionally already has a second bespoke mannequin in improvement that may compete in opposition to the Tesla Mannequin Y, probably in markets round Europe and past.
Xiaomi CEO hints at growth plans to Europe and past
As identified by CnEVPost, Xiaomi CEO Lei Jun shared some firm updates through livestream earlier right now, together with a clearer timeline of when prospects will see the arrival of the manufacturing model of the aforementioned SU7 Extremely. Per the video, the 1,548 horsepower four-door sedan will launch in China in Q1 of 2025.
As a result of the BEV is so highly effective, Jun stated every construct will depart Xiaomi’s manufacturing facility in “newbie mode. ” Drivers should full and go a step-by-step examination to unlock the car’s full efficiency, to “unleash it.”
Whereas Xiaomi initially focuses on its two variants of the SU7 in China, expansions to Europe would possibly quickly be within the playing cards. The automaker had the SU7 on show in Paris through the 2024 Olympic Video games, the place Lei Jun stated it will be obtainable globally, with out sharing a selected timeframe on when which may occur.
Xiaomi additionally just lately took the SU7 Extremely to the world-famous Nürburgring observe, reaching a prime velocity of over 350 km/h (217.5 mph). Though it solely has one EV in the marketplace, Xiaomi’s CEO has massive targets for the automotive arm, beforehand stating a goal to grow to be one of many world’s prime 5 automakers in 15 to twenty years. It’s potential, however it should price some huge cash to get there, one thing Xiaomi executives are conscious of and don’t appear phased by.
In a dialog with Bloomberg TV, Xiaomi CFO Alain Lam confirmed plans for international growth, together with Europe, however was reasonable in regards to the pending prices to get there:
We’re extra targeted on our development than profitability at this level. We do consider scale will convey revenue sooner or later. Proper now at this level I solely have one SKU, it’s distant from what we name profitability. We have to proceed to speculate on this enterprise.
Per Xiaomi’s Q2 2024 monetary report, its automotive arm recorded an adjusted web lack of RMB 1.8 billion ($252 million) and delivered 27,307 SU7 BEVs in China. These supply numbers ought to develop within the second half of the 12 months as Xiaomi has accomplished its meeting line growth and has twice elevated its manufacturing targets for the 12 months, which now sits at 120,000 models.
Earlier than Xiaomi turns into a prime automaker in Europe and past, its quick focus will stay on China, because it ought to. Lam once more spoke:
We do have the worldwide growth in thoughts, though proper now we try to meet all of the demand from prospects in China.
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