After nearly ten years of effort, Apple abandoned its electric car project last year, which had consumed $10 billion. In contrast, Chinese electronics manufacturer Xiaomi launched its first electric vehicle after just three years of development, delivering 135,000 units and pledging to double that figure by 2025. Xiaomi’s success highlights China’s dominance in the electric vehicle supply chain, as local companies have excelled in manufacturing. By leveraging this infrastructure, Xiaomi was able to source components quickly and affordably.
Government support has enabled Chinese electric vehicle manufacturers to transition from development to production much faster than traditional automakers. More companies, such as Leapmotor, Li Auto, and Seres Group, are beginning to turn a profit after years of intense competition in the world’s largest auto market. Additionally, Huawei, a major telecommunications firm facing U.S. sanctions, is developing autonomous driving software and collaborating with various Chinese automakers.
Xiaomi, often compared to Apple, has made strategic moves that competitors have sought to replicate, such as selling affordable, well-designed smartphones primarily online. Its CEO, Lei Jun, even emulated Steve Jobs’ style during the launch of Xiaomi’s first phone in 2011.
Xiaomi’s inaugural electric vehicle, the SU7, was introduced last March. This four-door sedan features artificial intelligence capabilities for parking assistance, in-car entertainment, and remote control of Xiaomi home appliances. Priced at $30,000, it offers a more affordable alternative to luxury models like Porsche.
Xiaomi produces a wide range of electronics, from robot vacuums to air conditioners, all interconnected through its operating system and app. The SU7 functions as an extension of this ecosystem, utilizing data from other devices to optimize battery charging times.
As noted by an economist, Xiaomi’s integration into consumers’ homes is significant, creating a cohesive network that other companies have struggled to achieve. While the SU7’s sales are modest compared to leading electric vehicle manufacturers in China, it positions Xiaomi among the key players in the market.
