Xiaomi, the prominent Chinese smartphone manufacturer, unveiled its inaugural electric vehicle (EV) on Thursday. The company, widely recognised for its tech offerings, presented the SU7 sedan, a much-anticipated model expected to leverage its shared operating system with Xiaomi's popular mobile devices.
This introduction comes against the backdrop of challenges in the global automotive market, particularly in China, the world's largest auto market. The industry is grappling with an excess production capacity and dwindling demand, leading to an intense price competition.
Despite these challenges, Xiaomi's Chief Executive, Lei Jun, articulated ambitious plans during the launch event, expressing the company's aspiration to secure a position among the top five automakers globally. Lei Jun emphasised a long-term vision of building a "dream car comparable to Porsche and Tesla" and outlined a strategic trajectory spanning the next 15 to 20 years.
Xiaomi, following a trend among tech companies diversifying into electric vehicles, had initially revealed its foray into the EV market in 2021. Committed to this transition, the company has earmarked a substantial investment of $10 billion over the next decade. Notably, Xiaomi stands out as one of the few new entrants in China's EV market, where authorities have been cautious about exacerbating the existing supply surplus.
During the launch event in Beijing, Lei Jun underscored the autonomous driving capabilities of Xiaomi's cars, positioning them at the forefront of the automotive industry. The production of Xiaomi-branded vehicles will be carried out by a unit of the state-owned automaker BAIC Group, housed in a Beijing factory with an annual production capacity of 200,000 vehicles. This strategic collaboration aligns with Xiaomi's ambitious goals and reflects its commitment to making a significant impact in the rapidly evolving electric vehicle landscape.
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