Chinese tech giant Xiaomi has unveiled its first electric vehicle, the SU7 sedan, marking a major milestone in its $10 billion investment in the smart EV market. The launch, just days after Huawei introduced its Aito M9 SUV, underscores the growing ambitions of China’s leading consumer electronics brands in the automotive industry.
Xiaomi’s Vision: Competing with Porsche and Tesla
During the launch event, Xiaomi CEO Lei Jun declared the company’s entry into a “new decade,” aiming to become one of the world’s top five automakers within 15 to 20 years.
Lei described the SU7 as “a dream car that is as good as Porsche and Tesla.” He acknowledged the challenges of building a high-performance vehicle but said Xiaomi’s offering was designed to rival models like Tesla’s Model S and Porsche’s Taycan Turbo. Performance comparisons presented at the event showcased competitive specifications for Xiaomi’s new sedan.
Mark Rainford, an automotive industry expert, praised the SU7, calling it a “winner” that could perform well in China. “It looks very compelling on paper, both performance- and tech-wise,” Rainford said, highlighting its seamless integration with Xiaomi’s smartphone ecosystem.
Xiaomi did not disclose the car’s price but hinted it would be positioned as a luxury product with a “slightly high” price point.
Huawei’s Expanding EV Portfolio
Xiaomi’s announcement follows Huawei’s debut of the Aito M9 SUV earlier in the week, priced from 469,800 yuan (approximately $66,500). The six-seater vehicle boasts luxury features like cinema-style projection screens designed to prevent motion sickness, massaging seats, and enhanced cabin space.
Huawei also recently launched an electric sedan aimed at competing with Tesla, signaling the company’s aggressive expansion in the EV market.
Challenges in a Crowded Market
Xiaomi and Huawei’s EV launches come amid intense competition in China’s auto market, the world’s largest. A recent price war has intensified as automakers battle for market share in a sector characterized by high inventories and fierce rivalry.
By targeting the luxury market, Xiaomi seeks to differentiate itself from other EV makers, leveraging its strong brand recognition in consumer electronics to carve out a niche. Huawei’s focus on premium features and spacious designs similarly aims to appeal to affluent buyers seeking high-end EV options.
A New Chapter in the EV Revolution
The entries of Xiaomi and Huawei into the EV space signify a broader trend of tech companies diversifying into the automotive sector. With ambitious goals and innovative offerings, these companies are set to challenge established players like Tesla and Porsche while reshaping the competitive landscape of China’s EV market.
As the competition heats up, all eyes will be on how these new entrants perform in a market defined by rapid innovation and shifting consumer preferences.