Xiaomi to roll out debut EV in China this month

Xiaomi SU7 / Photo credit: Xiaomi

As Apple winds down its electric vehicle (EV) plans, its smartphone rival Xiaomi will make a long-awaited entry into the global EV market. After introducing its first electric car – the Speed Ultra 7 (SU7) sedan – in December 2023, Xiaomi will start shipping the cars in China this month, Reuters reported.

Xiaomi has scheduled a launch event for the SU7 on March 28, at which point its 59 stores in the country will begin taking orders for the EV.

SU7’s launch reflects Xiaomi’s efforts to diversify its business after the stagnating demand for smartphones. The company had declared its commitment to invest US$10 billion in the automobile business back in 2021.

The event also coincides with the rising momentum of EV sales in China this year, which increased by 18% from January to February, the Reuters article noted. Xiaomi’s EV production is handled by state-owned automaker BAIC Group, whose Beijing factory has an annual capacity of 200,000 vehicles.

It’s unclear whether Xiaomi has any plans to bring its EV products to other markets, including Southeast Asia. According to an EY report, EV sales value across Southeast Asia is expected to hit between US$80 billion and US$100 billion by 2035.

Already present in the region are Xiaomi’s compatriots, such as Wuling and BYD. The latter is aggressively expanding in Southeast Asia, with plans to double sales in Singapore and the Philippines, while recently launching its first products in Indonesia.

Furthermore, Tesla stated that expansion into Southeast Asia is a priority, highlighting the market’s fast growth. To date, Tesla has obtained licenses to sell its cars in Malaysia and reportedly is in discussions to enter other countries, including Thailand.

That said, Xiaomi might be able to capitalize on its smartphones’ fairly strong brand in the region. According to a report from market research firm Canalys, Xiaomi holds Southeast Asia’s third-largest smartphone market share, which was at 15% in the third quarter of 2023.

See also: Southeast Asian investors bullish on electric bikes, clean energy in 2024