Xiaomi, an established Chinese technology company known for smartphones and other electronic gadgets, has launched its first electric car model, signalling its entry into the competitive automobile business. Xiaomi intends to position itself as a worldwide player in the vehicle business, demonstrating its ambition amid stiff competition. The news is part of a rising trend of big Chinese technology companies entering the electric vehicle (EV) sector.
The SU7, short for Speed Ultra, Xiaomi’s first electric vehicle, was recently launched at an event in Beijing. This automobile, set to enter the market in 2025, includes Xiaomi’s software to link with the company’s multitude of products. BAIC, a local manufacturer, will be in charge of producing the SU7. Notably, Xiaomi’s CEO, Lei Jun, emphasized a long-term goal, intending to rank among the world’s top five car manufacturers over a 15- to 20-year period.
The batteries for the SU7 will be provided by prominent Chinese EV manufacturer BYD and domestic battery giant CATL, highlighting crucial alliances to further Xiaomi’s entry into the EV sector. Numerous IT corporations in China are boosting their investments in the EV industry, capitalizing on the country’s position as the world’s largest automotive market. According to data from the China Association of Automobile Manufacturers, BYD presently leads China’s EV industry, outselling Tesla.
Xiaomi, which was founded in 2010, quickly gained popularity by delivering high-quality products at reasonable costs via online channels, which led to its development across numerous tech areas. Xiaomi’s entry into the electric car market now highlights the company’s diversification strategy and quest for global recognition beyond smartphones and electrical products.
Xiaomi hopes to establish a substantial foothold in the automotive sector, despite growing competition, with the introduction of the SU7 sedan and strategic alliances with key companies in the EV market. This move represents the expanding landscape of digital businesses venturing into the promising domain of electric mobility, promising a competitive future in the fast-developing EV sector globally.