$XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ Chinese tech giant Xiaomi has entered the electric vehicle market with the SU7 sedan, launching in March. Xiaomi is the world’s third-largest smartphone maker after Apple and Samsung, but now it’s expanding into cars.
Xiaomi's entry into the car market came after the US blacklisted the company in January 2021, prompting it to diversify. CEO Lei Jun and the board decided to invest $10 billion over 10 years to develop their EV.
Xiaomi’s experience with electronics and China’s robust auto industry facilitated this transition. The company assembled a team of 6,000 and adopted efficient production techniques like gigacasting, inspired by Tesla, to streamline and reduce costs.
Despite these efforts, Xiaomi is currently making a loss in the cutthroat Chinese EV market. Lei Jun acknowledges the company needs to produce 300,000 to 400,000 units of the SU7 to break even. The Chinese EV market is highly competitive, with players like Tesla, NIO, and Lee Autos driving innovation.[Happy][Happy][Happy]
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