EV industry welcomes a new player, smartphone maker Xiaomi

The electric vehicle (EV) industry has seen a significant surge in competition in recent years, drawing global attention. 

While industry titan Tesla (NASDAQ: TSLA) maintains its leadership, robust players like Li Auto (NASDAQ: LI), BYD, and XPeng (NYSE: XPEV) have emerged as compelling contenders. Established automotive giants BMW, Volkswagen, and Toyota have also entered the EV arena. 

Today, on December 28, a new entrant forayed into the industry as Chinese smartphone giant Xiaomi unveiled its inaugural electric car, accompanied by ambitious aspirations for the fiercely competitive EV market.

SU7 beats Porshe Taycan and Tesla Model S, Xiaomi says

The company’s first-ever automobile, dubbed Xiaomi SU7, is currently “in trial production and it will hit the domestic market in a few months,” the company’s CEO Lei Jun said in a December 26 post on X. The car’s price hasn’t yet been finalized, he added.

Xiaomi said it spent 10 billion yuan ($1.4 billion) to develop its inaugural EV. The SU7 beats Porsche’s Taycan and Tesla’s Model S on acceleration and other metrics, Lei Sun stated during a three-hour presentation. 

“We’ve engineered the SU7 to offer a level of driving performance that stands among the best in its class, including the Porsche Taycan Turbo. We’ve prioritized intelligent technology, drawing inspiration from the advanced systems in cars like the Tesla Model S.”

– Lei said.

Lei said the SU7 is equipped to become an industry leader, including in the burgeoning areas like autonomous driving. The car was designed by a team that previously worked at auto giants Mercedes Benz and BMW. 

According to a document published by the Ministry of Industry and Information Technology, the SU7 is described as purely battery-powered, with a driving range of 628 kilometers (390 miles) to 800 kilometers. The ministry also listed a subsidiary of the state-owned BAIC Group as the manufacturer of Xiaomi’s EV.

Integrated with Xiaomi’s smartphones

From a broader perspective, Xiaomi’s goal is to create a “Human x Car x Home’ smart ecosystem,” the company previously said. 

In that regard, the SU7 will be integrated with Xiaomi’s smartphones and internet-connected home appliances, Lei said. He also emphasized the company’s endeavors to ensure data privacy among the devices and develop a car that exceeds US safety standards for rear-end collisions. 

Following over three years of development, the EV’s sales are scheduled to begin in 2024.