Tesla is about to encounter even more competition in the Chinese market as Xiaomi gets ready to enter the auto industry.
Xiaomi announced on Tuesday that it will start delivering its first electric vehicle (EV) on March 28. Succeeding where Apple had previously failed, the Beijing-based tech giant, known for its budget-friendly smartphones, smartwatches, and other tech gadgets, is bringing the stylish Speed Ultra 7 (SU7) to its domestic customers. Xiaomi first unveiled this model last year.
According to Xiaomi, the SU7 boasts faster acceleration than some Tesla and Porsche EVs, with a range of up to 497 miles (800 kilometers). The new EV also features driver-assist capabilities and a digital cockpit and is already showcased in 59 showrooms across 29 cities in China.
Although Xiaomi hasn’t yet revealed the price of the SU7, local reports suggest it might sell for between 250,000 yuan (around $34,800) and 370,000 yuan (approximately $51,500). Meanwhile, Tesla’s Model 3, produced in Shanghai, is priced between 245,900 yuan and 285,900 yuan.
Tesla has been lowering its car prices in China to keep up with competitors like BYD. This Chinese automaker has seen significant success in the EV market with its affordable vehicles and is now making strides in international markets.
Xiaomi has announced plans to invest $10 billion in its automotive division over the next decade and hinted at the possibility of bringing the SU7 to global markets within the next few years. The company aims to become one of the world’s top five automakers in the next 15 to 20 years.