The Rise of Xiaomi in the EV Industry
In recent years, Xiaomi has made waves in the electric vehicle (EV) market, establishing itself as a formidable player despite having no previous experience in the automotive sector. Starting with the launch of the flagship model, the SU7 sedan, last year, Xiaomi achieved an astonishing milestone of 200,000 customer deliveries in just 119 days. This impressive growth demonstrates that technology companies can successfully enter and disrupt the automotive arena, particularly as modern software-defined vehicles (SDVs) become increasingly similar to smartphones.
Plans for Overseas Markets
Recently, executives from Xiaomi automobile confirmed their intention to expand beyond China, particularly eyeing European markets for future EV sales. This strategic move could reshape the landscape, especially given that the Xiaomi brand is already recognized internationally. President William Lu highlighted this ambitious goal during an earnings call, noting that the company is currently in research and preparation stages for its entry into Europe, which is projected to begin in about a year and a half.
Challenges and Demand in China
Xiaomi’s immediate focus remains on addressing the skyrocketing demand for its EVs within China. The delivery wait times for both the SU7 and the newly introduced Yu7 SUV, which recently debuted with remarkable enthusiasm, have stretched to 41 and 58 weeks, respectively. This overwhelming demand has led Lei Jun, Xiaomi’s CEO, to cheekily suggest that prospective buyers might want to explore alternatives like Xpeng or even competitors such as the Tesla Model Y. Even as Xiaomi gears up for opportunities in Europe, addressing these supply challenges back home will be crucial for seamless expansion.
