Xiaomi has done what Apple couldn't after announcing plans to start selling its first electric vehicle (EV), the Speed Ultra 7 (SU7), on March 28 in nearly 30 cities across China.
According to Xiaomi co-founder and CEO Lei Jun, the launch marks an extraordinary feat: it comes just three years after the company announced its foray into electric vehicles.
In December 2023, Lei wrote on social media platform X about his experience driving 100 cars to “learn from each car’s strengths” and gain the “first-hand experience” he felt was necessary to build a competitive car. The CEO’s efforts may have paid off: Xiaomi says the SU7 can accelerate from zero to 100 km/h in 2.78 seconds.
On X, he shared that he is "still determined to make a great car" as he approaches the third anniversary of his EV journey.
Like Apple, Xiaomi is best known for its smartphones. Data from research firm Counterpoint shows that in the first six weeks of the year, Xiaomi had 13.8% of the smartphone market in China, just behind Apple's 15.7%.
Meanwhile, Apple spent a decade trying to build an electric car without success. The decision to end Apple’s EV project came after a series of production issues forced the company to consider a less ambitious design for its self-driving vehicles.
In 2020, Bloomberg reported that Apple had a prototype of a self-driving minivan that it was testing in Arizona. But the company is finding it increasingly difficult to justify spending about $1 billion a year on the car program.
Xiaomi, on the other hand, is looking to capitalize on China’s existing EV industry. The company benefits from a partnership with Beijing Automotive Group, which gives it quick access to manufacturing licenses, according to Bloomberg . The partnership could help Xiaomi produce about 200,000 EVs a year.
Of course, the EV market is getting tougher and there is no guarantee that Xiaomi will succeed. The electric vehicle market is in decline. Companies like Tesla and BYD are waging a price war to attract consumers.
Xiaomi, which has yet to announce pricing for the SU7, is looking to target the high-end market. That could be a challenge in China, where EV makers are facing slowing demand. Still, there’s no denying that Xiaomi has managed to do what Apple has dreamed of for 10 years.
(According to Insider)
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