Xiaomi Aims to Develop a Car Comparable to Porsche and Tesla
Xiaomi joins the electric vehicle race with its first electric car, following in the footsteps of other Chinese tech giants like Huawei Aiming to rival industry leaders Porsche and Tesla, Xiaomi's entry signifies the growth of China's electric vehicle market
Xiaomi has revealed its inaugural electric car following Huawei's recent launch of its own, indicating that Chinese tech giants making strides in entering the electric vehicle market. The SU7 sedan was introduced by Xiaomi just two days after Huawei's debut of the Aito M9 SUV. While both companies are known for their expertise in smartphones and consumer electronics, they have now expanded their focus to include automotive innovation.
Xiaomi's CEO, Lei Jun, announced at a launch event in 2021 that the company plans to invest $10 billion over the next decade into a subsidiary dedicated to smart EVs. Jun stated that the company is entering a "new decade" and aims to become one of the world's top five automakers within the next 15 to 20 years.
"Its a new starting point for Xiaomi, and Im convinced that one day in the future, there will be Xiaomis running on every road of this world."
Huawei
Huawei launches its rival to Teslas Model S
Lei presented the company's goal of creating a top-tier car comparable to Porsche and Tesla during a three-hour presentation. He acknowledged the challenging task ahead, stating, "Building a quality car remains incredibly tough."
Lei pointed out that after a few years, Xiaomi had finally released a product that closely resembled Tesla's Model S and Porsche's Taycan Turbo. He directly compared the performance statistics of all three models on a slide shown during the presentation. Mark Rainford, an automotive industry commentator based in Shanghai and the host of the YouTube channel "Inside China Auto," praised Xiaomi's offering as a potential bestseller in China.
"It looks very compelling on paper, both performance- and tech-wise," he said, noting that the car could easily connect with Xiaomis smartphones.
Passersby walk past a Nio showroom in Yantai, China on November 26, 2023.
Costfoto/NurPhoto/Getty Images
Tesla challenger Nio gets $2.2 billion investment from Abu Dhabis CYVN
By creating what is a luxury product, the company also appears to be targeting a different market, Rainford suggested.
"They clearly believe they are a match for, or even better than, Porsche and Tesla's flagship models, which is very ambitious for a brand that most might consider a strong consumer electronics brand but not necessarily perceive as premium," he added.
Xiaomi did not disclose the price of the model at the event, although Lei stated that it would be "a little bit high."
The companys EV debut comes the same week as Huaweis launch of the Aito M9, a six-seater vehicle priced starting at 469,800 yuan (about $66,500).
Customers are looking at Huawei's Aito M9 model at a store in Shanghai on December 27.
Costfoto/NurPhoto/Getty Images
Huawei claims that the SUV offers the best space performance in its class, with premium features such as a projection screen that simulates the cinema experience without causing motion sickness. The vehicle also boasts massage function seats and double armrests for passenger relaxation during rides. According to a statement on Tuesday, these new vehicles contribute to China's already crowded auto market, the largest in the world, which has been experiencing a price war due to intense competition and high inventories in recent months.
Last month, Huawei also launched an electric sedan that was designed to take on Elon Musks Tesla (TSLA).
CNNs Wayne Chang contributed to this report.
